Displaying items by tag: globaldata

Zinc mines are recovering from the impacts of COVID-19, according to GlobalData, with production expected to recover by 5.2% in 2021 to reach 12.8 million tonnes (Mt). The leading data and analytics company notes that production declined by approximately 5.9% to 12.1Mt in 2020, mainly due to COVID-19 related lockdowns and restrictions; however, looking ahead, zinc production over the forecast period (2021–2025) is expected to grow at a compound annual growth rate (CAGR) of 2.1% to reach 13.9Mt in 2025.

Vinneth Bajaj, Mining Analyst at GlobalData, comments: “Bolivia’s zinc was particularly affected by the pandemic in 2020, but production is now expected to recover. Mines in the region such as the Colquiri, Cerro Rico and San Cristobal sites are now reopening. Similarly, the re-opening of Peru’s Chungar Mining Unit, and El Porvenir and Cerro Lindo mines is expected to increase production in the country by 9.4%, to reach 1.5Mt in 2021.

“However, production is not recovering in all regions, as declines are expected in Canada (-5.8%) and Brazil (-19.2%) - mainly due to scheduled zinc mine closures and planned maintenance shutdowns.

“The US, India, Australia and Mexico will be the key contributors to zinc production growth in 2021-2025. Combined production in these countries is expected to increase from a forecasted 3.6Mt in 2021 to 4.2Mt in 2025.”

2021 09 17 093202

Bajaj highlights some key zinc mine products worldwide:

  • One key upcoming project is the Aripuana Zinc mine in Brazil, which is jointly owned by Votorantim and Karmin Exploration and is currently under construction. By March 2021, 79% of the works were completed. During Q1 2021, the company invested $40m in the project, taking total investment to $353m since the beginning of construction. The project will have an annual zinc production capacity of 72.7 kilotonnes (kt), and is expected to commence operations in the third quarter of 2022.
  • Another major development is the Pavlovskoye project in Russia, which is 99.5% owned by State Atomic Energy Corporation Rosatom and is currently undergoing a definitive feasibility study. The lead-zinc-silver project reported mineral resources of an estimated 55Mt, with an average zinc grade equivalent to 4%. The $400m project will have an annual zinc production capacity of 223kt and is expected to commence operations in 2023.
  • Lastly, the Kudz Ze Kayah project in Canada, which is wholly owned by BMC Minerals Ltd (UK), is currently undergoing a definitive feasibility study (DFS) and awaiting regulatory approvals and permissions. In August 2020, the company announced that the assessment board had begun preparing its final screening report for the proposed mine development and in November 2020, the company issued an updated DFS for the project. The project will have an annual zinc production capacity of 106.6kt, and is expected to commence operations in 2023.

About GlobalData

4,000 of the world’s largest companies, including over 70% of FTSE 100 and 60% of Fortune 100 companies, make more timely and better business decisions thanks to GlobalData’s unique data, expert analysis and innovative solutions, all in one platform. GlobalData’s mission is to help our clients decode the future to be more successful and innovative across a range of industries, including the healthcare, consumer, retail, financial, technology and professional services sectors.

Published in Metals / Mining
Tagged under

Two international oil and gas players in Venezuela, TotalEnergies and Equinor, recently divested their respective 30.32% and 9.67% interest in the largest project, Petrocedeno, to the state-owned Petróleos de Venezuela S.A (PDVSA) company. According to GlobalData, this means that due to high risks and the unstable deteriorating economy in the country, international players no longer see an upside in Venezuelan projects. The leading data and analytics company notes that with less investments supplied from the private sector, Venezuela will not be able to sustain its oil and gas industry for long, as its own cash resources are extremely limited.

Svetlana Doh, Upstream Oil & Gas Analyst at GlobalData, comments: “Petrocedeno is a critical project in Venezuela’s portfolio and the largest upgrader in the country with a capacity to process over 200,000 barrels of heavy crude oil per day (bd). In the past few years, Venezuela faced severe fuel shortages, and this year, in a desperate attempt to solve this problem, the Petrocedeno upgrader is planned to be re-designed to produce naphta as a feedstock for refineries. This essentially means that refineries in the country are in such a desperate need for renovation or even simple upkeep, that now upgraders have to perform a refining step for them.”

2017 04 20 114457Most of the refineries built in Venezuela were designed to process medium to light crudes, which are in very low stock in the country and are also used as a diluent to produce exportable grades.

Doh continues: “The conversion of the upgraders could be very challenging, as it would require new equipment, while cash-strapped PDVSA can barely find the funds to conduct an elementary maintenance of its refineries. The continuous drop of crude oil production in Venezuela, which is a main pillar of the country’s economy, combined with sanctions imposed by the US Government, the COVID-19 pandemic, corruption in the government and lack of investment led the country to collapse. Annual oil production in Venezuela declined from an estimated 2.03 million barrels per day (mmbd) in 2017 to a shockingly low 0.48 mmbd in 2020.”

Despite the fact that TotalEnergies and Equinor stated that their decision to divest their interest was to prioritize high-return assets in their portfolios, both companies’ decision to pursue their low carbon strategy instead, which is incompatible with heavy crude oil production in Venezuela, is technically a risky conversion of the upgrader and could be a trigger to significantly reduce their presence in the country. There is also a clear strategy for these two companies in reducing their exposure to high carbon emitting assets, and heavy crude oil is a very energy intensive upstream process; this, combined with the overall above-ground risk in Venezuela, makes the exit decision a consequent decision.

Doh continues: “Currently, the primary international partners and investors of PDVSA are Chinese and Russian companies, which have invested the most in the Venezuelan oil and gas sector during recent years.”

About GlobalData

4,000 of the world’s largest companies, including over 70% of FTSE 100 and 60% of Fortune 100 companies, make more timely and better business decisions thanks to GlobalData’s unique data, expert analysis and innovative solutions, all in one platform. GlobalData’s mission is to help our clients decode the future to be more successful and innovative across a range of industries, including the healthcare, consumer, retail, financial, technology and professional services sectors.

GlobalData

Published in Oil & Gas
Tagged under

Trinidad and Tobago is expected to contribute around 25% or 820 million cubic feet per day (mmcfd) of the Americas natural gas production in 2025 from planned and announced projects (new build projects, excluding the US L48), according to GlobalData, a leading data and analytics company.

The company’s report, ‘Americas Oil and Gas Upstream Development Outlook to 2025’, reveals that 514 mmcfd of natural gas production in Trinidad and Tobago in 2025 is expected from planned projects with identified development plans, while 306 mmcfd is expected from early-stage announced projects that are undergoing conceptual studies and are expected to be granted approval for development.

A total of seven natural gas projects are expected to start operations in Trinidad and Tobago during 2021-2025. Of these, Colibri and Matapal are some of the key projects that are expected to collectively contribute around 58% of the natural gas production in the country in 2025.

Svetlana Doh, Oil & Gas Analyst at GlobalData, comments: “Despite quite a positive outlook for the country’s production in the near term, GlobalData projects that natural gas output in Trinidad and Tobago will start declining after 2024. Since most of the developed and undeveloped shallow water blocks are already licensed, more aggressive exploration work needs to be conducted regarding deepwater acreage. The country offered some deepwater blocks in the 2020 deepwater competitive bid round, but the round was delayed until 2021. Further delays could be expected due to the sudden death of Trinidad and Tobago’s energy minister in April 2021.”

2021 09 13 211613

GlobalData identifies the US as the second highest country in the Americas with 608 mmcfd of natural gas production in 2025 or around 18% of the total Americas natural gas production in the year (excluding the US L48). Brazil follows with natural gas production of 538 mmcfd from planned and announced projects in 2025.

Among oil and gas companies, BP, China National Petroleum, and Petroleo Brasileiro SA lead with the highest natural gas production of 421 mmcfd, 412 mmcfd and 387 mmcfd respectively, in 2025 from planned and announced projects (excluding the US L48).

  • Comments provided by Svetlana Doh, Oil & Gas Analyst at GlobalData
  • Information based on GlobalData’s report: Americas Oil and Gas Upstream Development Outlook to 2025
  • Announced/Planned: Denotes only new build assets that are in different stages of development and have not started commercial operations
  • Planned: Denotes greenfield projects that have received final investment decision (FID) from equity-holding companies to develop/build/construct it.
  • Announced: Denotes projects that are undergoing conceptual studies/pre-FEED or moving into FEED/FDP or are likely to target FID.
  • This report was built using data and information sourced from proprietary databases, primary and secondary research, and in-house analysis conducted by GlobalData’s team of industry experts.

About GlobalData

4,000 of the world’s largest companies, including over 70% of FTSE 100 and 60% of Fortune 100 companies, make more timely and better business decisions thanks to GlobalData’s unique data, expert analysis, and innovative solutions, all in one platform. GlobalData’s mission is to help our clients decode the future to be more successful and innovative across a range of industries, including the healthcare, consumer, retail, technology, energy, financial and professional services sectors.

Published in Oil & Gas
Tagged under

Right from the network and data security to identity management and unified threat management (UTM), startups are offering cybersecurity solutions to identify vulnerabilities, thwart attacks, and secure networks. Against this backdrop, the Unicorn Prediction Model of GlobalData, a leading data and analytics company, has released a list of 50 cybersecurity startups that have the potential to become unicorns (>US$1bn).

Apoorva Bajaj, Practice Head of Financial Markets at GlobalData, says: “As we are entering the Code War era, where every digital device, no matter how small, can be ‘weaponized’ and cyberattacks are proliferating globally, investors are investing heavily to back cybersecurity startups. At the same time, the COVID-19 pandemic has offered tailwinds to the industry, as firms embraced a remote work paradigm with more applications and data stored in the cloud, a flurry of new threats is likely to emerge, making cybersecurity investment a necessity.”

GlobalData’s latest report, ‘Future Cybersecurity Unicorns – 18 August 2021’, reveals that in Q2 2021, the industry reported an investment of over US$8.1bn, spanning 209 deals globally. The report also highlights a spike in venture capital (VC) investments in cybersecurity startups in Q2 2021, majorly driven by startups like Transmit Security, Trulioo, and Forter raising funding in the range of US$300m to US$550m. In Q2 2021, North America accounted for over 58% deal volume followed by Europe (17%).

cybersecurity unicorns

Some of the cybersecurity startups in GlobalData's list of potential unicorns include BetterCloud, Guardicore, Deep Instinct, and Swimlane.

BetterCloud, a US-based SaaS Management Platform, enables IT professionals to discover, manage and secure the growing stack of SaaS applications in the digital workplace. The company recently launched BetterCloud Discover, a new centralized platform that gives enterprises insights into SaaS adoption, and visibility into full scope of sanctioned and unsanctioned applications within its multi-SaaS environment.

Guardicore, a startup offering cloud security solutions, is focused on delivering more effective ways to protect critical applications from compromise through visibility, micro-segmentation, and real-time threat detection and response.

Deep Instinct, a US-based cybersecurity solution provider, is leveraging deep learning and cybersecurity technologies. Recently, the company added new features and capabilities in its prevention-first solution, including increased resilience against adversarial machine learning attacks, credential theft protection, and malicious behavior reporting.

Swimlane, a cybersecurity automation solutions provider, assists organizations in handling all security operation (SecOps) requirements, including prioritizing alerts, orchestrating tools, and automating the remediation of threats. Recently, the company raised US$40m to accelerate partnerships and alliances, expand R&D, and enable further global expansion.

Mr. Bajaj concludes: “Increase in VC deals coupled with substantial growth in patents granted, along with positive news sentiments and growing mentions of cybersecurity in public company filings indicate that this technology is of considerable interest to both VCs and corporates. The COVID-19 pandemic is providing tailwinds to this industry, as companies are embracing remote work model. With cloud-based backup becoming the order of choice to save applications and data, a range of new online threats is likely to emerge, which will make investment in cybersecurity a necessity.”

  • Quotes are provided by Apoorva Bajaj, Practice Head of Financial Markets at GlobalData
  • The information is based on GlobalData’s Disruptor Intelligence Center 
  • Based on GlobalData’s Startup Scorecard ranking of 10,000 top startups, 126 Cybersecurity startups globally are shortlisted, of which 50 Cybersecurity startups are predicted to become future unicorns based on GlobalData’s proprietary Machine Learning Model.
  • GlobalData’s Startup Scorecard ranks startups relatively using quantifiable data on three pillars: Investments, Innovation and Market Presence to ensure that it is objective and can be comparatively measured across different sectors and themes
  • This press release was written using data and information sourced from proprietary databases, primary and secondary research, and in-house analysis conducted by GlobalData’s team of industry experts

About GlobalData’s Disruptor IC

GlobalData’s Disruptor decodes emerging tech-enabled opportunities with must-have information on promising start-ups, technology led innovations, latest sector trends, strategic partnerships, consumer insights, and venture capital portfolio investments among others.

About GlobalData

4,000 of the world’s largest companies, including over 70% of FTSE 100 and 60% of Fortune 100 companies, make more timely and better business decisions thanks to GlobalData’s unique data, expert analysis and innovative solutions, all in one platform. GlobalData’s mission is to help our clients decode the future to be more successful and innovative across a range of industries, including the healthcare, consumer, retail, financial, technology and professional services sectors.

Published in Technology News
Tagged under

After rising by an estimated 1.2% in 2020 to 359.2Mt, global bauxite production is forecast by GlobalData to increase by 3.8% in 2021 to reach 372.8Mt. The leading data and analytics company notes that increased output from mines in Australia (+4.1%) and Guinea (+3.6%), as well as production from mines elsewhere returning to their pre-COVID levels, will be the key contributors.

2021 08 20 233502

Vinneth Bajaj, Associate Project Manager at GlobalData, comments: “Over the forecast period (2021-2025), global bauxite production is expected to grow at a compound annual growth rate (CAGR) of 2.2% to reach 406.7kt by 2025. Australia (+1.6%) and Guinea (+6.5%) will maintain a steady supply growth, supported by a series of upcoming projects. Together, they account for eight of the 17 planned bauxite projects, tracked by GlobalData, which have the potential to commence production by 2025.”

In Australia, bauxite production growth will be supported by the recommencement of Metro Mining’s Bauxite Hills mine, where operations were halted due to the wet season. The mine is expected to produce around 4Mt of bauxite in 2021. Further, the formal commitment of the stage 2 expansion of the mine to a capacity of 6Mt, which is part of the company’s long-term development plan, will be dependent on the global market conditions.

Bajaj continues: “In Guinea, the Boffa mine, which began operations in January 2020, is expected to gradually reach its full capacity during the second half of 2021. The mine is expected to produce up to 9Mt of bauxite in 2021, compared with 7Mt in 2020. Earlier in 2021, operations began at the Garafiri project which has over 300Mt of bauxite reserves. The project has an initial production capacity of 3Mt, which will be expanded up to 8Mt.”

In late July 2021, China Railway Construction Corporation (CRCC) announced completion of the construction of a railway line from Boffa to Boke, which will now increase the single trip freight volume to 10kt, up from 5kt earlier, as part of the first phase of the Boke developement project. Phases 2 and 3 include exploitation of bauxite resources in the new mining areas of Santou II and Houda and development of an alumina refinery in the Boke special economic zone. Overall, this will play a crucial role in establishing Guinea as an export nation.

About GlobalData

4,000 of the world’s largest companies, including over 70% of FTSE 100 and 60% of Fortune 100 companies, make more timely and better business decisions thanks to GlobalData’s unique data, expert analysis and innovative solutions, all in one platform. GlobalData’s mission is to help our clients decode the future to be more successful and innovative across a range of industries, including the healthcare, consumer, retail, technology, energy, financial and professional services sectors.

Published in Metals / Mining
Tagged under

The Middle East is expected to register the highest refinery condensate splitter capacity additions globally between 2021 and 2025, contributing more than half of the total capacity additions by 2025, says GlobalData, a leading data and analytics company.

GlobalData’s report, ‘Global Refinery Condensate Splitter Units Outlook to 2025’, reveals that the Middle East is likely to witness total condensate splitter unit capacity additions of 486 thousand barrels per day (mbd) by 2025, mostly through new build refineries.

Teja Pappoppula, Oil and Gas Analyst at GlobalData, comments: “Iran is the sole contributor to the Middle East’s condensate splitter unit capacity additions as it continues to process gas condensate produced from the giant South Pars field. Among the new build refinery projects in the country, the planned Siraf refinery in Iran is likely to add a capacity of 360 mbd in 2025. The refinery will process gas condensate mainly to produce gasoline and petrochemical feedstock.”

2021 08 20 111243

GlobalData identifies Africa as the second highest contributor, accounting for around 27% of the total additions by 2025. Forcados and Ohaji are two refineries in Nigeria that are contributing 100 mbd of capacity each in the region and both are expected to become operational in 2023.

Asia ranks third globally, contributing around 7% of global condensate splitter unit capacity additions during the outlook period. Malaysia accounts for total capacity additions in the region, with 150 mbd of capacity expected to be added by 2025 from the new build Pengerang II project.

Announced/Planned: Denotes only new build assets that are in different stages of development and have not started commercial operations.

  • A new build project that has not received relevant/ required approvals to develop/build the project is considered as Announced.
  • A new build project that has received relevant/ required approvals from the national government/ energy ministry/ regulatory authority/ local environmental authority/ port authority/local government, etc to develop/build the project is considered as Planned.

This report was built using data and information sourced from proprietary databases, primary and secondary research, and in-house analysis conducted by GlobalData’s team of industry experts. 

About GlobalData

4,000 of the world’s largest companies, including over 70% of FTSE 100 and 60% of Fortune 100 companies, make more timely and better business decisions thanks to GlobalData’s unique data, expert analysis, and innovative solutions, all in one platform. GlobalData’s mission is to help our clients decode the future to be more successful and innovative across a range of industries, including the healthcare, consumer, retail, technology, energy, financial and professional services sectors.

Published in Oil & Gas
Tagged under

Oil and gas contract activity declined following the relatively stable activity in Q1 2021, with the industry recording a seven percent decrease in the number of contracts and a significant decrease in disclosed contract value in Q2 2021, according to GlobalData, a leading data and analytics company.

The latest report by GlobalData, ‘Q2 2021 Global Oil & Gas Industry Contracts Review’, notes that the number of oil and gas contracts declined from 1,453 in Q1 2021 to 1,353 contracts in Q2 2021. The value of these contracts also decreased to $27.6bn in Q2 from US$46.4bn in Q1, wherein the significant difference maker was Chiyoda and Technip Energies’ US$12.2bn contract for North Field East LNG which was signed in Q1 2021.

Pritam Kad, Oil & Gas Analyst at GlobalData, comments: “The decline in the number of contracts in Q2 2021 looks temporary and will begin to recover, as the industry foresees an improvement in contracts activity with business outlook, crude oil prices and COVID-19 restrictions now easing.”

2021 08 20 091255

Operation and Maintenance (O&M) recorded 47% of the total contracts in Q2 2021, followed by procurement scope with 18%, and contracts with multiple scopes, such as construction, design and engineering, installation, O&M, and procurement, which accounted for 16%.

The notable contracts include Saipem and Daewoo Shipbuilding & Marine Engineering (DSME) joint venture, as well as Keppel Shipyard’s contracts from Petrobras for the construction of Buzios VIII (P-79) and Buzios VII (P-78) FPSO for deployment on the Buzios field. Brazil, and McDermott International and Sinopec International Petroleum Service consortium’s US$2bn future Engineering, Procurement, Construction, and Commissioning (EPCC) contract from Total for the EPCC services for Tilenga development in the Lake Albert Basin, Republic of Uganda. 

  • Quotes provided by Pritam Kad, Oil & Gas Analyst at GlobalData
  • Data taken from GlobalData’s Q2 2021 Global Oil & Gas Industry Contracts Review

About GlobalData

4,000 of the world’s largest companies, including over 70% of FTSE 100 and 60% of Fortune 100 companies, make more timely and better business decisions thanks to GlobalData’s unique data, expert analysis and innovative solutions, all in one platform. GlobalData’s mission is to help our clients decode the future to be more successful and innovative across a range of industries, including the healthcare, consumer, retail, financial, technology and professional services sectors.

Published in Oil & Gas
Tagged under

Brazil alone is expected to contribute around 23% or 1.3 million barrels per day (mmbd) of global crude oil and condensate production in 2025 from key offshore planned and announced projects (new-build projects) that are expected to start operations between 2021 to 2025, according to GlobalData, a leading data and analytics company.

The company’s report, ‘Global Offshore Upstream Development Outlook, 2021–2025’, reveals that 1.16 mmbd of crude and condensate production in Brazil in 2025 is expected from planned projects with identified development plans, while 169 thousand  barrels per day (mbd) is expected from early-stage announced projects that are undergoing conceptual studies and are expected to get approval for development. A total of 29 crude oil projects are expected to start operations in the country during 2021-2025. Of these, Bacalhau, Buzios V (Franco), and Lula Oeste are some of the key projects that are expected to collectively contribute about 44% of the country’s crude and condensate production in 2025.

Effuah Alleyne, Senior Oil & Gas Analyst at GlobalData, comments: “While Saudi Arabia dominates liquids production globally, mostly from already producing projects, Brazil leads crude and condensate production from upcoming/new projects. Brazil’s prolific pre-salt layer in the Santos Basin has produced a strong portfolio of offshore projects operated mainly by Petróleo Brasileiro S.A. (Petrobras), the main national oil company in the country. These projects have shown robust economics, such as development breakeven oil prices averaging US$40 per barrel and have significantly contributed to South America’s trend of surpassing North America’s offshore production by 2023.”

2021 08 16 105636

GlobalData identifies the US as the second highest country globally with 655 mbd of crude production in 2025 or about 11% of the total global offshore crude and condensate production in the year. Norway follows with crude production of 508 mbd from planned and announced offshore projects in 2025.

Among the companies, Petrobras, China National Offshore Oil Corp, and Equinor ASA lead globally with the highest offshore crude and condensate production of 768 mbd, 371 mbd and 331 mbd, respectively, in 2025 from planned and announced projects.

  • Comments provided by Effuah Alleyne, Oil & Gas Analyst at GlobalData
  • Information based on GlobalData’s report: ‘Global Offshore Upstream Development Outlook, 2021–2025’.
  • Announced/Planned: Denotes only new-build assets that are in different stages of development and have not started commercial operations
  • Planned: Denotes greenfield projects that have received final investment decision (FID) from equity-holding companies to develop/build/construct it.
  • Announced: Denotes projects that are undergoing conceptual studies/pre-FEED or moving into FEED/FDP or are likely to target FID
  • This report was built using data and information sourced from proprietary databases, primary and secondary research, and in-house analysis conducted by GlobalData’s team of industry experts.

About GlobalData

4,000 of the world’s largest companies, including over 70% of FTSE 100 and 60% of Fortune 100 companies, make more timely and better business decisions thanks to GlobalData’s unique data, expert analysis, and innovative solutions, all in one platform. GlobalData’s mission is to help our clients decode the future to be more successful and innovative across a range of industries, including the healthcare, consumer, retail, technology, energy, financial and professional services sectors.

Published in Oil & Gas
Tagged under

Asia is expected to register the highest refinery alkylation capacity additions globally between 2021 and 2025, contributing about 61% of the total capacity additions by 2025, says GlobalData, a leading data and analytics company.

GlobalData’s report,  ‘Global Refinery Alkylation Units Outlook to 2025 – Capacity and Capital Expenditure Outlook with Details of All Operating and Planned Alkylation Units’, reveals that Asia is likely to witness a total alkylation unit capacity additions of 138 thousand barrels per day (mbd) by 2025. Of this, 29 mbd of capacity would be from new-build refineries while the rest of the capacity is from expansion of the existing refineries.

Teja Pappoppula, Oil and Gas Analyst at GlobalData, comments: “Together, China and India account for 82% of the alkylation unit capacity additions in Asia by 2025. The Vadinar refinery in India is the largest upcoming expansion project in Asia with 32 mbd of capacity expected to be added in 2024. Among the new-build refinery projects, the planned Gulei refinery in China is likely to add a capacity of 10 mbd in 2022.”

2021 08 16 090655

GlobalData identifies Africa as the second highest contributor to the global alkylation unit capacity additions accounting for about 18% of the total additions by 2025. The planned Lagos I refinery in Nigeria is one of the highest contributors in the region with 20 mbd of capacity expected to become operational in 2022.

Both the Middle East and North America rank third with almost equal contribution of about 7% each to the global alkylation unit capacity during the outlook period 2021–2025. In the Middle East, the planned Al-Zour refinery in Kuwait is the highest contributor in the region with 9 mbd of capacity expected to become operational in 2021. In the North America, the planned Dos Bocas refinery in Mexico is the only contributor in the region with 10 mbd of capacity expected to become operational in 2023. 

  • Comments provided by Teja Pappoppula, Oil & Gas Analyst at GlobalData
  • Information based on GlobalData’s report:  ‘Global Refinery Alkylation Units Outlook to 2025 – Capacity and Capital Expenditure Outlook with Details of All Operating and Planned Alkylation Units’
  • Announced/Planned: Denotes only new build assets that are in different stages of development and have not started commercial operations.
  • A new build project that has not received relevant/ required approvals to develop/build the project is considered as Announced.
  • A new build project that has received relevant/ required approvals from the national government/ energy ministry/ regulatory authority/ local environmental authority/ port authority/local government, etc to develop/build the project is considered as Planned.
  • This report was built using data and information sourced from proprietary databases, primary and secondary research, and in-house analysis conducted by GlobalData’s team of industry experts 

About GlobalData

4,000 of the world’s largest companies, including over 70% of FTSE 100 and 60% of Fortune 100 companies, make more timely and better business decisions thanks to GlobalData’s unique data, expert analysis, and innovative solutions, all in one platform. GlobalData’s mission is to help our clients decode the future to be more successful and innovative across a range of industries, including the healthcare, consumer, retail, technology, energy, financial and professional services sectors.

Published in Chemicals
Tagged under

Colombia needs to pursue a much more aggressive oil exploration strategy in order to avoid highly contested fracking activities or an increase in gas prices as a result of importing, according to GlobalData. The leading data and analytics company notes that the country has seen no large discoveries in the last five years, and its crude oil and natural gas output is projected to decline by more than 282,000 barrels of oil equivalent per day (boed) in the next five years. This amount is enough to provide electricity for more than 130,000 homes during a whole year.

2017 04 20 114457Svetlana Doh, Upstream Oil & Gas Analyst at GlobalData, comments: “Colombia is about to see a major deficit in oil that will make the sore topic of fracking more pressing. The country’s shale resources have huge potential, likely exceeding conventional reserves by far. If no discoveries are found soon, people will face the very real decision between a rise in oil prices and protecting the environment.”

There is currently only one announced project in Colombia, which is expected to come online by 2024.

Doh continues: “The Aruchara project is ongoing but its peak production rate is less than 2,000 barrels per day (bd), which is just 0.7% of the production required to keep Colombia’s overall oil and gas supply constant. There are also 90 discoveries that haven’t yet been moved to full development, but the size of the discovered accumulations is not significant and none of them have proved commerciality. Significant and urgent investment in exploration is needed to revive the industry.”

Colombia is estimated to possess significant unconventional resources. At full development, these could help to mitigate the steep decline of mature fields. Indeed, by some estimates, prospective unconventional reserves are two to five times higher than the country’s conventional reserves. However, horizontal drilling and fracking has been an arguable topic in Colombia, and many activist organizations speak strongly against it due to its risk in harming environment and health consequences. In 2018, the Colombian State Council (CdE) introduced a moratorium on any commercial development of shale resources in the country. Currently, only investigative pilot projects (PPIIs) are allowed, and just for the purpose of collecting information on project feasibility and potential damage to environment. In other words, no real development is yet occurring for recovering this resource.

Further, there are currently two lawsuits filed against commercial horizontal drilling and fracking, with another lawsuit filed in July 2020 and specifically targeting PPII guidelines. The government still needs to figure out how to address this opposition and move forward with unconventional drilling.

Doh adds: “All these events are more relevant when considering that Colombia is facing a steeply declining production from natural gas fields, which is forecasted to drop by more than 53% from 1,170 million cubic feet per day (mmcfd) in 2020 to less than 540mmcfd in 2025. Natural gas is the second largest energy source in Colombia. In case no new gas sources are found, the country will have to boost its gas import, which could subsequently raise end user gas prices by more than 50%. Indeed, for Colombia to maintain its energy security in future, a more aggressive exploration program is needed in the frontier areas, like offshore fields and unconventional drilling.”

About GlobalData

4,000 of the world’s largest companies, including over 70% of FTSE 100 and 60% of Fortune 100 companies, make more timely and better business decisions thanks to GlobalData’s unique data, expert analysis and innovative solutions, all in one platform. GlobalData’s mission is to help our clients decode the future to be more successful and innovative across a range of industries, including the healthcare, consumer, retail, financial, technology and professional services sectors.

Published in Oil & Gas
Tagged under
Page 1 of 4