ERCE Launches New Asia Pacific Newsletter

ERCE's new Asia Pacific Spotlight is a quarterly email publication that provides insights and commentary on the oil and gas industry across the Asia Pacific region from our Singapore offices.
Posted by Holly Owen on Mon, 07/02/2018 - 10:54

In the first issue of the newsletter we discuss the following:

Who is ERCE?

ERCE is a leading energy consulting group. We are headquartered in London with a growing office in Singapore supporting our clients in the Asia-Pacific Region. Our multi-disciplinary team collaborates to find solutions and add value to the technical and commercial challenges presented to us by clients for the evaluation of upstream energy projects.

Global Price Update

Oil prices have continued their upward trend based on Iran sanctions and Venezuela's reduced output. Lower global stocks and economic growth have also pushed prices higher. The Bret-WTI spread has grown due to bottlenecks in the US oil pipeline network. Asian LNG prices have reached highs not seen since 2015 following strong demand from China, India and South Korea.

Source: ERCE OPR Q1 2018

What lies in store for Timor Leste?

Timor Leste's future once looked bright with revenue from the Bayu-Udan gas condensate field and development of the huge Sunrise gas field on the horizon. Times have changed for the young nation with Bayu-Udan depleting, Sunrise stalled, a lack of recent discoveries and issues with attracting exploration dollars. The country is staring at a huge drop in the national budget in the coming years. However, the recent agreement to redraw the maritime boundary with Australia and Carnarvon's interest in the Buffalo Field could signal a change in their fortunes.

Rise of the Independents

China's oil and gas industry has long been dominated by the big three NOC's, but this could be changing. In upstream a number of independent E&P companies have emerged acquiring interests and positions overseas. With import restrictions being loosened, Shandong's "teapot" independent refiners are having a growing influence on downstream output. The speed at which the Chinese Government further relaxes market capital controls will have significant impacts on the growth and impact of these players.

Meet Stewart Easton, our APAC General Manager

Stewart Easton is ERCE's Asia-Pacific region General Manager. Coming from a geology and geoscience background, Stewart has 24 years of experience across the oil and gas industry in operating companies and consulting.

Evolve your EUR

In the Asia Pacific region a number of companies find themselves relying on early field-life estimates of In Place volumes and Estimated Ultimate Recovery (EUR) Despite acquiring new data and performing analysis that justifies updating these estimates, management can be reticent to move the EUR goalposts. this is especially the case if the move is a reduction. Read the article to understand why evolving your EUR can lead to better understanding your field and improving medium to late-life decision making.

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