The proposed merger of oil field service firms Technip and FMC is the natural conclusion to two years of supressed oil prices. A decade of good times for the sector ended abruptly with the Opec meeting of November 2014, and the hangover has yet to clear.
“All the people have complained to me that it was very hard to develop a project in such conditions. But… today’s weather is just perfect – so, I do not understand why you have issues,” Total chief executive Patrick Pouyanne joked at the inauguration ceremony of the Shetland gas plant (SGP) yesterday. It was Pouyanne’s first visit to the Shetlands, the UK’s northernmost inhabited islands, more than 160km north of mainland Scotland.
The oil industry has all but handed Brazil’s new president, Michel Temer, a recipe for rekindling investor enthusiasm after his predecessor Dilma Rousseff was forced to step down yesterday. Ease local content rules, nix the sub-salt operating mandate of state-controlled Petrobras, level the playing field for transshipment, improve the framework for upstream unitisation. Tick the boxes, Mr Temer, and a sub-salt bidding round next year should restore Brazil’s prestige as an oil province, the industry says.
Shell has just published for the first time a scenario that lays out a pathway broadly consistent with the aim of keeping global warming to 2°C this century.