2020 has been an extraordinary year for the oil and gas industry. When Rigzone asked several informed industry-watchers what they considered the biggest oil and gas trends during such a momentous year, their responses focused largely on two areas: digitalization and consolidation. Read on for their insights.

Bob Benstead, Vice President, Strategic Planning with business cloud software firm Infor: One of the biggest trends I’ve seen in oil and gas in 2020 has been a reduction in operating costs through fewer full-time equivalents (FTEs) and the deferral of capital projects. Another is the growing desire for companies to take on digital initiatives hat require them to look outside of their traditional industry.

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Source: Rigzone

Canada’s oil landscape looks encouraging for 2021 as Whitecap Resources Inc. acquires two oil and gas companies in addition to merger mania between other energy companies, with anticipated growth through the coming year as demand for energy steadily increases. In November, Whitecap Resources announced a plan to acquire rival company TORC Oil & Gas through an all-stock transaction of $704.12m equivalent. The deal is expected to go through by 25 February 2021, providing an encouraging outlook for the first quarter of next year.

This merger would mean an estimated 100,000 bpd equivalent in production making it one of Canada’s major players. The expected value of the combined company is around $3.13 billion.

Since demand for energy has steadily increased since the slump in early 2020, so has Whitecap’s share price, going from C$2.29 ($1.80) in early July to C$4.96 ($3.89) in December, with a market cap of C$2.025 billion ($1.58bn) on the Toronto stock exchange.

Whitecap CEO Grant Fagerheim stated of the acquisition, “We are combining two strong Canadian energy producers to form a leading large-cap, light oil company geared towards generating sustainable long-term returns for shareholders while prioritizing responsible Canadian energy development’”.

The TORC acquisition comes just months after Whitecap announced its plan to buy NAL Resources for nearly $119 million in August. Manulife, an insurance and financial company, will have a 12.5 percent stake in the combined company as Whitecap issues it with 58.3 million shares. The move to acquire both companies drives forward Whitecap’s aim to increase its Alberta and Saskatchewan assets and operations.

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Source: Oil Price

If you have further questions related to any merger mania, feel free to reach out to us here.

ConocoPhillips has made a large oil discovery in the Norwegian Sea close to a producing oilfield. This is what the U.S. oil and gas company said on Tuesday.

Preliminary estimates point to the field containing between 75 million barrels and 200 million barrels of recoverable oil equivalent. ConocoPhillips said, adding that additional appraisal would determine the flow rates and the ultimate resource discovery. This includes as well as a potential plan for development.

The new discovery on the Slagugle prospect is just 14 miles north-northeast of the Heidrun Field. This is a discovery by Conoco in 1985 when it was the operator for the exploration and development phase. Heidrun has been producing oil and gas since 1995.

ConocoPhillips, the operator of the license containing the latest oil discovery on the Slagugle prospect, will now assess the find alongside other nearby prospects with a view toward future delineation of the discovery and potential tie-in to existing infrastructure in the area, the Norwegian Petroleum Directorate said.

“This discovery marks our fourth successful exploration well on the Norwegian Continental Shelf in the last 16 months,” Matt Fox, ConocoPhillips’s executive vice president and chief operating officer, said in a statement.

“All four discoveries have been made in well-documented parts of the North Sea and the Norwegian Sea and offer very low cost of supply resource additions that can extend our more than 50-year legacy in Norway,” Fox added.

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Source: Oil Price

If you have further questions about ConocoPhillips oil discovery, feel free to reach out to us here. 

Oil prices rose early on Monday after the U.S. FDA approved the Pfizer-BioNTech vaccine for emergency use and shipments of batches of vaccine vials began this weekend, with first vaccinations expected as early as on Monday.

As of 9:04 a.m. ET today, WTI Crude prices had gained 1.67 percent at $47.34, and Brent Crude was trading at above the $50 a barrel mark, at $50.69, up by 1.48 percent on the day.

Last Thursday, Brent Crude hit $50 a barrel for the first time since oil prices had crashed in early March, as hopes of swifter-than-thought vaccine rollout fueled bullish expectations of strengthening oil demand early next year.

The U.S. approval of the Pfizer-BioNTech vaccine further strengthened bullish sentiment on Monday that fuel demand could rise with mass vaccination. The U.S. Food and Drug Administration (FDA) issued on Friday the first emergency use authorization for a vaccine against COVID-19. The authorization allowed the vaccine to be distributed in the United States.

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Source: Oil Price

Multiple new technologies are present now that’s why the oil and gas industry is suffering in 2020. 3D printing is the latest fad to gain traction in space. Additive manufacturing has been extremely useful during the Covid-19 pandemic. It is delivering vital PPE to frontline workers across the globe. But now, the ever-evolving technology is also useable in innovative ways across the energy sector.

Earlier this year, we saw several companies relying on 3D printing to supply hard-to-get parts because of global pandemic restrictions and delays in delivery. This takes the reliance away from third-party companies as well as the need to ship parts from other countries. Further, the more parts that can be in-house, the better the inventory processes of the company.

To effectively manufacture additives, companies must create a digital inventory. The idea is to make a database of all the parts we need. Their design and how they can be makeable with a 3D printer. This helps companies prepare for any spare parts they might suddenly need.

The Process

3D printing continues to be a costly process. It is particularly useable for basic parts such as pipes, nuts, and bolts. It’s fantastic for when you’re in a bind and parts are impossible to get your hands on.

By 2025, 3D Printing in the oil and gas sector is expected to be worth $32 billion according to recent reports. Although 3D printing only accounts for 0.1 percent of the global manufacturing market at present, increased adoption of the technology suggests that it could be worth as much as $60 billion by 2030.

3D printing has already been adopted by the automotive and aerospace industries. Now, the energy sector is looking to 3D printers for manufacturing processes, to supply vital components at the drop of a hat.

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If you have further questions about the topic of 3D printing and its impact on the oil and gas industry, contact us here.