Crude oil and gas are naturally occurring substances that are found in rock in the Earth's crust. These organic raw materials are created by the compression of the remains of plants and animals in sedimentary rock such as sandstone, limestone, and shale.
Investors can be quickly overwhelmed by the complex jargon and unique metrics used throughout the oil and gas industry. This introduction is designed to help anyone understand the fundamentals of companies involved in oil and gas by explaining key concepts and standards of measurement. Crude oil and natural gas are naturally occurring substances that are found in rock in the Earth's crust. These organic raw materials are created by the compression of the remains of plants and animals in sedimentary rock such as sandstone, limestone, and shale.
Of course, new reserves are an essential source of future revenue, so E&P companies spend a lot of time and money exploring for new untapped reservoirs. If an company stops exploring, it will have only a finite amount of reserves and a depleting quantity of oil and gas. Revenue will inevitably decline over time. In short, companies can only maintain or grow revenue by acquiring or finding new reserves.
The North Sea is back. A successful licensing round cemented North Sea Oil as one of the world’s most mature oil and gas basins. On Wednesday, the UK Oil and Gas Authority (OGA) awarded 123 licenses—over 299 blocks—to 61 companies in the 30th Offshore Licensing Round in the UK North Sea.
EIA stands for Energy Information Administration, and the global demand growth for 2018 was estimated at 1.6 million b/d. The questions resulted with a confidence in recovery, which results with high expectations for increased economic growth, commodity prices and investments overall. This is supported by the increase in energy demand above the average levels, as the US and global economy continue to display strong growth rate.
Reuters said that concerns on global economy and Engine Oils demand are affecting the market, while a 16-month trade dispute between the US and China continues. National Australia Bank commodity research head Lachlan Shaw told Reuters: “There’s renewed doubts about a US-China trade deal… and at the same time we’ve had inventory lifts quite a lot more than expected at the crude level out of the US this week.”