Deloitte survey_ oil and gas executives see 2017 as a year of recovery

Deloitte’s survey reveals that from upstream to downstream, most respondents expect to see an increase in capital expenditures next year. Gas house eggs In fact, the upstream sector, which took the hardest hit in this downturn, is the most optimistic about a recovery, followed by the midstream sector. Electricity projects for grade 7 The study also reveals a number of trends in opinion that offer insight into the direction the industry may be headed:

• Seventy-one percent of professionals believe it is possible for the 2016 average price per barrel to reach $40-60, or for prices to at least rise to that range by the end of the year (61 percent). Gas nozzle stuck in car Almost half of the respondents believe that prices will continue to rise, reaching $60-80 by 2017 (44 percent) or by 2020 (46 percent).

• For 2017-2020, 70 percent of the respondents expect prices to range between $2.50-3.50 per million British thermal units (MMBtu), with a third anticipating this price band in 2017.

• Survey respondents expect Asian natural gas prices to be much higher than Henry Hub to the end of 2016-2020, which creates opportunity for U.S. World j gastrointestinal oncol impact factor LNG exporters. 3 gases in the atmosphere Of professionals surveyed, 81 percent believe international prices will range from $5-10 per MMBtu. Electricity for refrigeration heating and air conditioning answer key However, an increasingly optimistic view (29 percent) is for prices to be in the $10-15 per MMBtu range by 2017 to 2020.

When asked which policy or geopolitical issue would most affect their company, survey respondents cited OPEC production decision as having the most impact on the upstream sector, but U.S. V gashi kenga e zagrebit tax and policy decisions are next, outranking several prominent international issues.

• Next areas of greatest concern are changes in U.S. Grade 9 electricity quiz tax policy and regulation (38 percent) and environmental and local stakeholder issues (34 percent).

• While the survey did not break out specific regulations, professionals see a possibility of profound energy policy changes to be enacted, and for the scope and impact of those changes to depend on the outcome of the presidential elections in November 2016.

The findings showed a shift in expectation about the impact of short- and long-term cost containment initiatives from 2016-2017. Electricity terms and definitions Long-term cost-containment initiatives, a hallmark of the oil and gas industry expansion before the downturn, are considered the most impactful, as shown by an increase from 42 percent of respondents to 50 percent for 2017. Electricity jeopardy game Short-term cost-reduction efforts are seen as less impactful in 2017 — a key indicator of an expectation of recovery. Electricity usage by appliance In addition, executives expect capital expenditures committed to exploration activities to rise in 2017 (42 percent) — more evidence for an optimistic outlook for the industry’s longer-term recovery.

• In 2017, 50 percent of respondents see better operating efficiencies and enhanced well productivity as the biggest opportunity for cost reductions. Gas nozzle prank This is a shift away from head count, portfolio changes and activity reductions.

• Although more than half of the respondents believe 40 percent or more of cost reductions are short-term, an overwhelming 64 percent see operating efficiency gains as the best path to sustainable cost reductions, followed by contract renegotiations.

• While 43 percent of respondents expect more personnel reductions in 2016; next year, only 31 percent believe there will be ongoing layoffs. Electricity load shedding In fact, 36 percent of the respondents expect hiring will restart in 2017.

• For 2016, 42 percent expect capital expenditure to continue declining; but, in 2017, the outlook changes as 43 percent of respondents anticipate capital expenditure to rise in 2017 — optimism for a recovery next year is returning.

“Contraction in the upstream sector has begun to wear on the midstream sector, once thought to be somewhat immune from commodity price volatility,” said Andrew Slaughter, managing director of the Deloitte Center for Energy Solutions, Deloitte Services LP. Gas efficient suv 2015 “However, the sector’s fee-based contracts are at risk of being renegotiated or challenged in bankruptcy court, given the financial stress of upstream producers. Electricity generation by state We already are seeing movement toward consolidation, and more could be on the way. Electricity 101 presentation Professionals also see infrastructure building both in the U.S. Electricity year invented and in Mexico as the biggest area of midstream opportunity.”

The midstream sector has many opportunities for profitable growth in the burgeoning U.S. Gas 85 LNG export industry, and the U.S. Electricity and magnetism connect to form Gulf Coast region is seen as the area that will present the most opportunity, according to 63 percent of respondents.

• Sixty-two percent expect a moderate level of consolidation in both 2016 and 2017 (59 percent), but when asked about whether the midstream sector would consolidate significantly in 2017, affirmative responses increased from 15 percent to 23 percent. Electricity 24 hours However, midstream limited partnership (MLP) rollups into C-corporation structures were seen as unlikely (28 percent) or moderate (52 percent).

• Optimism is most clearly seen in the results related to rising capital expenditures. Electricity news in nigeria For 2016, only 26 percent of the respondents saw a net increase in capital expenditures, but that cohort’s expectation rose to 41 percent for 2017, with 28 percent of that group citing a modest 10 percent uptick.

• Regulation (39 percent) and costs (35 percent) top the list of the biggest challenges facing this highly regulated, capital intensive segment.

• Despite regulatory challenges, the outlook for refined products exports next year is seen as positive, as U.S. Gas 1940 hopper crude oil exports have offered new competition.

• Capital expenditures will likely increase from 2016 to 2017, according to 33 percent of survey respondents, but by no more than 10 percent year over year. Electricity 4th grade powerpoint Slightly fewer (30 percent) expect a net capital expenditure reduction next year.

The return of optimistic sentiment indicates that the industry downturn may finally be over, and suggests low to modest industry growth over the next year, with a full recovery by the end of the decade. Save electricity images Slaughter concluded, “The midstream sector is looking to expand its crude oil capabilities and rebuild infrastructure, and the downstream sector is looking for more demand growth. Electricity nyc As optimism returns, as it has, the list of opportunities should be given another look, for it shows the direction the industry will likely take in the years to come.”

Deloitte’s annual “Oil and Gas Industry Survey” is based on in-depth interviews with 250 oil and gas professionals, and provides an insider outlook on short- and long-term opportunities and challenges across all sectors of the industry.

The Deloitte Center for Energy Solutions (the “Center”) provides a forum for innovation, thought leadership, groundbreaking research, and industry collaboration to help companies solve the most complex energy challenges. Electricity cost nyc Through the Center, Deloitte’s energy and resources group leads the debate on critical topics on the minds of executives — from the impact of legislative and regulatory policy, to operational efficiency, to sustainable and profitable growth. Gas x strips walmart With locations in Houston and the District of Columbia, the Center offers interaction through seminars, roundtables, and other forms of engagement where established and growing companies can come together to learn, discuss and debate. Electricity symbols and meanings www.deloitte.com/us/energysolutions.

About Deloitte Deloitte provides industry-leading audit, consulting, tax and advisory services to many of the world’s most admired brands, including 80 percent of the Fortune 500. Our people work across more than 20 industry sectors to deliver measurable and lasting results that help reinforce public trust in our capital markets, inspire clients to make their most challenging business decisions with confidence, and help lead the way toward a stronger economy and a healthy society.

As used in this document, “Deloitte” means Deloitte LLP and its subsidiaries. Electricity rates el paso Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Types of electricity tariff Certain services may not be available to attest clients under the rules and regulations of public accounting.

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