Thoughts on Business and Technology

Hydrocarbon Energy

oil_iconOil                                                      

historic_oil_prices

Business Segments in Oil Industry and key players :

The oil and gas industry can be broadly classified into three segments. The upstream segment comprises exploration and production (E&P), while the downstream segment includes refining and marketing (R&M). In between, the midstream segment includes the transportation, storage, and trading.

Upstream – exploration & production

The upstream sector includes the searching for potential underground or underwater crude oil and natural gas fields, drilling of exploratory wells, and subsequently drilling and operating the wells that recover and bring the crude oil and/or raw natural gas to the surface. wikipedia

  • National Oil Companies (NOC)
    • Saudi Aramco (Ministry of Petroleum & Mineral Resources)
    • Qatar Petroleum (Ministry of Energy & Industry)
    • ADNOC (UAE Ministry of Energy)
    • PDVSA (Venezuela Ministry of Popular Power of Petroleum and Mining)
    • NIOC (Iran Ministry of Petroleum)
    • NNPC (Nigeria)
    • SOMO (Iraq Ministry of Oil)
    • KPC (Kuwait Ministry of Oil)
  • State owned
    • Gazprom – Russia
    • LUKOIL – Russia
    • SINOPEC – China
    • Rosneft – Russia
    • PetroChina – China
    • Ecopetrol – Colombia
    • YPF S.A – Argentina
    • Eni SpA – Italy
    • Statoil ASA – Norway
    • Sasol Ltd – South Africa
  • Super Majors
    • Exxon Mobile
    • Chevron
    • Shell
    • BP
  • Large Integrated 
    • Hess (HES)
  • Oil & Gas Exploration Companies 
    • Anadarko Petroleum Corporation (APC)
    • Occidental Petroleum (OXY)
    • Marathon Oil (MRO)
    • Pioneer Natural Resources (PXD)
    • ConocoPhillips (COP)
    • CNOOC Ltd
    • Apache Corp (APA)
    • Canadian National Resources Ltd
    • Inpex Corp
    • Chesapeake Energy Corp (CHK)
    • Devon Energy Corp (DVN)
    • Continental Resources (CLR)
    • Noble Energy Inc.(NBL)
  • Oilfield Services
    • Schlumberger
    • Halliburton
    • Saipem
    • Transocean
    • Baker Hughes
    • Fluor
    • Weatherford International
    • BJ Services Company
    • Petrofac
    • China Oilfield Services Ltd.
  • Equipment & Supplies 

Midstream – pipelines & transportation of Oil and gas

The midstream sector involves the transportation (by pipeline, rail, barge, oil tanker or truck), storage, and wholesale marketing of crude or refined petroleum products. Pipelines and other transport systems can be used to move crude oil from production sites torefineries and deliver the various refined products to downstream distributors – wikipedia

  • Transneft – Russia
  • Enterprise Products Partners (NYSE: EPD ) – USA
  • Plains All American (NYSE: PAA ) – USA
  • Enbridge (NYSE: ENB ) – Canada
  • TransCanada (NYSE: TRP ) – Canada
  • Spectra Energy (NYSE: SE ) – USA
  • Williams Companies (NYSE: WMB ) – USA
  • ONEOK Partners (NYSE: OKS ) – USA
  • Ultrapar Holdings (NYSE: UGP ) – Brazil
  • Enbridge Energy Partners (NYSE: EEP ) – USA
  • Cheniere Energy (NYSE:LNG) – USA

http://www.bloomberg.com/markets/companies/pipelines

Downstream – refineries & distribution

The downstream sector commonly refers to the refining of petroleum crude oiland the processing and purifying of raw natural gas, as well as the marketing and distribution of products derived from crude oil and natural gas. The downstream sector touches consumers through products such as gasoline or petrol, kerosene, jet fuel, diesel oil, heating oil, fuel oils, lubricants, waxes, asphalt, natural gas, and liquefied petroleum gas (LPG) as well as hundreds of petrochemicals. – wikipedia

  • Phillips 66 – USA
  • Reliance Industries – India
  • Marathon Petrolium Corp – USA
  • Valero Energy Corp – USA
  • JX Holdings – Japan
  • SK Innovation Co, Ltd – South Korea
  • HollyFrontier Corp – USA
  • Tesoro Corp – USA

World Oil reserves
oil-reserves-by-country

 

Cost of producing oil per barrel of oil ( or oil equivalent)

Lifting Costs Finding Costs Total Upstream Costs
United States  Average $12.18 $21.58 $33.76
    On-shore $12.73 $18.65 $31.38
    Off-shore $10.09 $41.51 $51.60
All Other Countries Average $9.95 $15.13 $25.08
    Canada $12.69 $12.07 $24.76
    Africa $10.31 $35.01 $45.32
    Middle East $9.89 $6.99 $16.88
    Central & South America $6.21 $20.43 $26.64

* 5,618 cubic feet of natural gas equivalent to one barrel. ( source – EIA )

Fuel sources present and future outlook (EIA)

Top Hydrocarbon producers

Company Assets Revenue Profits Margins Proved Reserves Country ROIC% 3Yr CGR
TNK-BP 35 53 1 1.89 9 Russia 28 9.7
Ecopetrol 52 37 9 24.32 2 Colombia 18 31.3
CNOOC 60 38 11 28.95 3.19 China 17 33
LUKOIL 91 134 10 7.46 17.3 Russia 14 19.7
Rosneft 106 90 12 13.33 22.8 Russia 10 27.1
PetroChina 301 310 21 6.77 11.1 China 7 29.1
ConocoPhillips 153 235 12 5.11 8.4 USA 10 -24
Total 205 209 15 7.18 11.4 France 10 17.6
Statoil 129 108 13 12.04  5.4 Norway 16 15.1
Gazprom 328 139 39 28.06 14.2 Russia 12 16
BP 293 376 26 6.91 17.7 UK 7 16.1
Chevron 209 236 27 11.44 4.3 USA 17 11.8
Shell 345 470 31 6.60 14.2 Netherlands 12 18.9
Exxon 331 434 41 9.45 24.9 USA 24 15.8

 

Nanatgas_icontural Gas                            

 

eia_natgas_eu_us_jp

 

Top 10 countries with proven Natural Gas reserves

1  Russia 48,700,000,000,000 12 June 2013 est.[7]
2  Iran (see: Natural gas reserves in Iran) 33,600,000,000,000 12 June 2013 est.[8]
3  Qatar 25,100,000,000,000 12 June 2013 est.[9]
4  Turkmenistan 17,500,000,000,000 12 June 2013 est.[10]
5  United States 9,460,000,000,000 12 December 2013[11]
6  Saudi Arabia 8,200,000,000,000 1 January 2012 est.[12]
7  Venezuela 5,524,500,000,000 19 July 2011[13]
8  Nigeria 5,246,000,000,000 1 January 2010 est.
9  Algeria 4,502,000,000,000 1 January 2010 est.
10  Australia 3,825,000,000,000 1 January 2012 est.[12]

Top U.S Natural Gas Producers

 

Company

Total Production (MMcfe/day)

U.S. Nat Gas as % of Total Production

1 ExxonMobil 26,376 14.5%
2 Chesapeake Energy 3,049 84.5%
3 Anadarko 4,110 56.6%
4 Devon Energy 3,960 51.2%
5 Encana 3,395 54.9%
6 BP 20,598 8.9%
7 ConocoPhillips 9,840 16.8%
8 Southwestern Energy 1,364 98.7%
9 Chevron 16,140 8.0%

US Natural Gas Consumption overall and by sector 

us-natgas-consumption-chart      us-natgas-consumption-by-sector

 

 

 

 

 

 

 

Global Natural Gas Consumption doubled from 1980 to 2010  

 

 

 

 

 

 

 

 

 

 

 

Resources :

  • http://www.pipelineandgasjournal.com
  • http://www.opec.org/
  • http://www.oilandgasiq.com/
  • on natural gas – http://www.hubbertpeak.com/gas/eia/
  • http://www.unitedstatescommodityfunds.com/

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