May 17, 2020

Global Oil & Gas Capital Expenditure Over $1 Trillion

energy digital
global oil & gas capital
GlobalData
Oi
Admin
2 min
Oil & Gas sector breaks the $1 trillion mark
LONDON, UK (GlobalData), 23 August 2012 - Increased activity in the Exploration and Production (E&P) sector will be the primary driver in pushing...

 

LONDON, UK (GlobalData), 23 August 2012  - Increased activity in the Exploration and Production (E&P) sector will be the primary driver in pushing oil and gas capital expenditure (capex) to an enormous $1,039 billion for 2012, states the latest report by natural resources experts GlobalData.

The new report* predicts that the total oil and gas capex will increase by 13.4% this year over the 2011 total of $916 billion, as oil companies intensify upstream operations across locations as diverse as offshore Brazil, the Gulf of Mexico and the Arctic Circle.

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Investor confidence in new upstream projects is being driven by the increasing number of oil and gas discoveries (242 last year alone), combined with consistently high oil prices and the arrival of new technologies that are giving the major firms access to deep offshore reserves that were previously technically and financially unviable.

North America is expected to witness the highest capex globally, with $254.3 billion, representing a share of 24.5% of the 2012 global total. Compared to a global average capex growth rate of 13.4%, North America is expected to witness a capex growth of 15.7%. The increase of unconventional oil and gas activities, especially the continuing exploitation ofshale oil and gas sites and the development of Canadian oil sands are the major drivers for these investments.

GlobalData predicts Asia-Pacific to follow very closely with a capex of $253.1 billion, while the Middle East and Africa are forecast to spend $229.6 billion.

National Oil Companies (NOCs) are expected to lead in terms of capex, contributing approximately half of the total, with Integrated Oil Companies (IOCs) and independents making up the remainder. NOCs including Petroliam Nasional Berhad, China Petroleum & Chemical Corporation and Petroleo Brasileiro S.A plan on substantially increasing their E&P spending this year.

In terms of capital expenditure for the 2012–2016 period, Petroleo Brasileiro S.A. ranks first globally amongst NOCs, whereas ExxonMobil Corporation is expected to be the number one IOC. Together, these two plan to undertake a massive oil and gas capex of $409 billion through to 2016.

* Oil & Gas Capital Expenditure Outlook, H1 2012

Source: GlobalData

 

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Jul 13, 2021

Technology revolution for water retailers

Utilities
technology
IoT
digitaltransformation
Paul Williams
4 min
Paul Williams, Chief Technology Officer at Everflow Tech, reflects on privatisation, industry complexities and future for utilities in a digital world

In April 2017, the UK’s water retail market in the world opened for business – the single biggest change to the water sector since privatisation. This development allowed businesses, charities and public sector organisations to shop around for the best deal.
However, like any industry, this change hasn’t been without its sticking points; here, Paul Williams, CTO at Everflow Tech (pictured far right), discusses how retailers can harness technology to their advantage

Our CEO, Josh Gill, set up independent retailer Everflow Water in 2015, and Everflow Tech is his response to the difficulties it faced.

Quotations could take up to a week to produce, billing software had to be manually updated and brokers were unable to manage the complete customer journey in one place – all of which took time, cost money and allowed for human error.

The more complexity that was involved in billing or quoting, the more contact end customers needed to have with their retailers, pushing up the cost to serve for every SPID. This meant retailers – ourselves included – found themselves in a situation where profits were simply eaten up by service costs.

We also note that it can traditionally be hard for retailers to stay on top of balancing what they are charging their customers with what they are being charged by the market. To further exacerbate this, the longer a change goes unnoticed, the more trouble it can be to balance the issue.

It was these issues that Josh and his (at the time) small team wanted to ameliorate, creating their own technology in the absence of anything else.

This technology evolved into our award-winning retail sales, billing and customer management platform for the water retail market, and Everflow Tech was launched as a standalone venture in 2018, selling the software externally for other water retailers and their customers to benefit from.

What retailers want

As a relatively new entrant to the world of utilities competition, the water market could be seen to be lagging behind, particularly when it comes to innovation.

In fact, as recently as 2019, Ofwat said it expected the industry to be making technological advances and to be working with a culture of innovation, collaborating with companies both within and outside of the sector.

And with cost-savings for consumers traditionally lower than for other utilities, retailers need to be offering something more – whether that’s better support, energy-efficiency advice or more accurate data.

What’s more, consumers have had a taste of the power of technology, and they’ve come to expect nothing less from retailers across the board.

Another key issue – thrown into sharp relief during the past 12 months (and counting) of a pandemic – is rising levels of arrears, which are likely to increase bad debt beyond margins that retailers originally allowed for when the market was created.

In such a low-margin industry, there is a limit to the amount of debt retailers can take on, especially as recovering costs can be a very slow process. Ofwat has signalled that this issue could be addressed as early as this year, with a mechanism for recovering bad debt to be established during 2021/22. 

The market needs simple solutions to better serve the end user, and we were perfectly placed to develop those solutions. At Everflow, our software is designed for the water retail market, by the water retail market.

As well as simple billing, clear-to-understand workflows, and a revenue assurance system to allow retailers to quickly compare market charges, Everflow has also introduced a complete debt solution, allowing missed payment dates to drive late payment charges and escalations automatically.

Retailers are able to design and put out their own bill and quotes, tailoring customer journey and overall experience – whatever the circumstances.

What does the future hold?

Automation is key to any industry; we’re heading into an age of driverless cars and smart homes, and this drive for tech will filter through to our industry, and we need to catch up. 

The Internet of Things – a network of physical objects connected to each other – means human error (and effort) can effectively be removed from many everyday tasks, which goes for meter readings too. However, in the 21st century, the water market is still not leveraging previously emerged technology in the form of smart meters to provide accurate billing. 

Consumers are also becoming more empowered, both to ask for information and change their preferences if they don’t like what they learn. Retailers need to be armed with this information, not next week, not tomorrow, but now – and, at Everflow Tech, we’re putting that information at their fingertips.

But the retailers themselves need to speak up too, and we will always work with them to get the best ideas on what needs to be developed and when.

Our strong bond with Everflow Water, along with other key customers, means we have a direct interest in making sure our systems serve the water market in the best way they can. 

For us, the goal is to make sure retailers on our platform can grow as much as possible, leaving behind laborious daily processes to focus on their own strategic growth and, most importantly, helping their customers.

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