CERAWeek by IHS Markit was the headline act in the industry this week. It started with the leaders of OPEC and the International Energy Agency (IEA) issuing warnings that the ongoing lack in upstream spending could result in a future energy crisis. The IEA sees little-to-no increase in upstream spending outside of the U.S. in 2018, said the agency’s executive director Fatih Birol. OPEC Secretary-General Mohammad Barkindo echoed those concerns saying: “We have seen a very sharp reduction in investment, particularly in long-cycle projects both onshore and offshore for almost two consecutive right into three consecutive years.”
Meanwhile, Total’s CEO Patrick Pouyanné said at the conference his company isn’t banking on the Permian Basin, saying it’s an incredible area but not the best allocation for his company.
And, U. S. Energy Secretary Rick Perry took the stage on March 7 to tout industry innovation, not regulation, as a means to energy security. He said America is in the midst of an incredible energy revolution driven by technological advances which have become the “new energy realism.”
The same day, Royal Dutch Shell CEO Ben van Beurden talked climate change, saying Shell has shifted strategy to focus on becoming a world-class investment case all the while being environmentally sound in its actions. Also, General Motors’ CEO Mary Barra told the conference her company was unwavering in its commitment to an emissions-free future.
In A&D News, Devon Energy propelled itself past a $1 billion divestment goal set less than a year ago with an agreement to sell a chunk of assets in the Barnett Shale for $533 million. Devon said an undisclosed company agreed to buy the southern portion of its position primarily in Johnson County, Texas.
Additionally, QEP Resources may be setting up a potential multibillion divestitures in order to regroup as a pure Permian player. The company said it will sell one of its powerhouse cores—the Williston Basin—as well as assets in the Uinta and Haynesville, effectively jettisoning 85% of its acreage.
- CERAWeek: OPEC, IEA Heads Warn Of Low Upstream Investment
- CERAWeek: Total Plays To Strengths To Create Value Without Permian
- QEP Sales Event: Half-Million Acres Outside Permian Up For Grabs
- CERAWeek: Rick Perry Says Innovation, Not Regulation, Is ‘New Energy Realism’
- Devon Energy To Sell Barnett Shale Chunk For $553 Million
- CERAWeek: Shell CEO Pinpoints Climate Change As Its Biggest Concern