Tuesday August 26 2014 1 EMIL PEÑA Industry Overview 2 Industry Overview Quick Facts Oil and gas extraction is a mature stable market in the United States Trends include rising global demand from emerging economies increased crude oil output from offshore drilling increased natura ID: 716509
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U.S. ENERGY TODAY
For the U.S. Mexico Chamber of Commerce
Tuesday, August 26, 2014
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EMIL PEÑASlide2
Industry Overview2Slide3
Industry Overview- Quick Facts
Oil and gas extraction is a mature, stable market in the United StatesTrends include
rising global demand from emerging economies, increased crude oil output from offshore drilling, increased natural gas production from new fields, and pressures from regulations and alternative energy growth- GLOBAL EVENTS LIKE ARAB SPRING AND RUSSIAN AGRESSIONNew technologies have allowed increased exploration of previously unattainable resources
Developing LNG and GTL Technologies for MAX VALUE
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Industry Trends
The oil and gas extraction industry benefits from rising oil and gas prices and strong global demand
Sources:
1. Deutsche Bank Markets Research. “Oil & Gas for Beginners.” 25 January 2013.
2. Credit Suisse. Oil & Gas Primer. September 2011.
3.
IBISWorld
Industry Reports.
Oil Demand Correlation with Real GDP Growth (1969 – 2008)
Industry Composition
The oil and gas drilling and extraction industry is worth
$319.5 billion in the United StatesCrude oil makes up 58.4% of the market while natural gas represents 41.6%The United States sends 59% of its oil and gas exports to Canada and 19% to MexicoTexas, Oklahoma, and Louisiana contain the largest amount of industry output and revenue in the continental United States
U.S. Oil & Gas Drilling and Extraction Market SegmentationSlide4
We Are Booming
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Biggest Innovation in the 21
st
Century- Shale Gas and Associated Tight OilU.S. has abundance, legal structures (private mineral ownership) and the political will to continue
Impacting Global Events- Impacting Europe’s and China’s Manufacturing Competitiveness and Middle Eastern Energy DominanceSlide5
The Unconventional O&G Revolution
Major U.S. Fields
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Source: EIA, Drilling Productivity ReportSlide6
The Unconventional O&G Revolution
Hydraulic Fracking 1947-2014
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Around Since 1947 and in Texas Since 1980s
George Mitchell, Jack Stanley and others in Tight Sands and Horizontal Drilling
The Current Boom Started in 2008 and Shale Gas now 44% of Domestic Production and Tight Oil is Up 56% Surpassing 8 of the OPEC 12 Countries
George Mitchell- Father of FrackingSlide7
Shale’s Global Impact-
There’s a New Sherriff in Town
Europe to China; Russia and Norway7
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heap U.S. Domestic Gas and Lack of Demand has Sent Nat Gas to Global Markets (Europe; Japan; India others)
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ut U.S. Utilities and Manufacturing Converting and Operators Continuing to Drill- Prices Predicted NOT TO RISE and JOBS RETURNING ONSHORE Slide8
Shale’s Future Impact-
North South Axis
Canada, U.S., Mexico and Beyond8
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rab Capitals Quake that East-West Tie is Broken
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educing U.S. and Hemispheric Dependency through Increased Production, Transportation- Keystone and More Fuel Efficiency
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ext Revolution is in the
Politics of Energy- North and SouthSlide9
The Gretzky Effect
Skate to Where the Puck is Going to Be
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Liquefied Natural Gas (LNG)- Domestic and Global Export
Gas To Liquids (GTL)- Increasing the Value of Nat Gas by Rescuing Stranded Resource and Helping the Environment
Thirsty for oil, energy companies wasting less valuable byproduct: natural
gas- 8/23/14
Amid pipeline shortage in rural South Texas, wells flaring natural gas directly into the airSlide10
The Shameless Plug
Energy Safety
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etter Knowledge Better Discipline in Energy Safety Both On and Offshore
Predict, Avoid and Better Manage Risk
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roviding World-Class Support for Mishap Prevention (based around NASA Safety Systems)
VS