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2014: A crucial year for the gas and oil industry

A report recently published by Wood McKenzie has stated that 2014 could be a “pivotal” year for the gas and oil industry, while 2013 has been declared a mixed year.

The Wood McKenzie report, which was recently published, gives predictions for the year ahead for the gas and oil industry. The report was commissioned last year and could lead to changes in how the industry is regulated.

The report explains how capital investment in the gas and oil industry continued to grow during 2013, reaching a record £21.3 billion. However, there were also a lot of project delays that proved to be expensive, and the costs of some of the projects threatening to spin out of control meant they had to be delayed. Production failed to perform as well as it could, and there was a lack of exploration success.

However, 2014 looks set to be a much better year, according the report. It is predicted that there will be an increasing amount of UK-based deals throughout the next 12 months. In addition, the report highlighted the fact that there are “promising new fields due on-stream” for the year ahead.

One area of concern that was outlined was the lack of success in the UK exploration field. There are many issues affected exploration, one of them being that some companies are unable to gain adequate investment to fund the projects. However, with new announcements regarding gas exploration and a government push to develop shale production, this could change in the years’ ahead.

Gas and oil exploration wasn’t very productive in 2013 and the Wood Review explains that success in the exploration area combined with production performance will be essential for the longevity of the industry.

There was also plenty of optimism in the report for the year ahead, although the writers of the report urged caution. The analysts expect to see an increase in production in the UK and they are forecasting 14 new fields to come on stream.

However, there are concerns some companies might not reach these goals, as this is what has happened in previous years.

Another area that was discussed in the review is the potential impact of the Scottish referendum, which could lead to a split in the oil and gas assets of Scotland and the UK.

Final recommendations from the report will be delivered later this year.

Cuadrilla announce plans for two more shale gas exploration sites

As ministers continue to argue in favour of shale gas as a sustainable, affordable form of power generation, Cuadrilla, a UK-based fracking company, has announced plans for two new exploration sites. The two proposed sites will be based in the Fylde. The exploration is planned so that the company can gain a deeper understanding of the potential of Lancashire’s shale gas supplies.

Before the exploration can be given the ahead, Cuadrilla needs to apply for planning permission. If approved, this will give permission to drill, hydraulically fracture, and test shale gas supplies

The two new sites for potential exploration have been named as Roseacre Wood and Preston New Road. In addition to the planning application, permission will also be sought for seismic arrays, which would be necessary to monitor the hydraulic fracturing process.

Ahead of the exploration work, an independent consultancy will carry out an Environmental Impact Assessment. Representatives from Cuadrilla are planning to talk to residents to discuss the plans and a public consultation is to be held; a scoping report will be submitted to Lancashire County Council to outline Cuadrilla’s approach to any of the necessary environmental assessments.

Commenting in a press release, Francis Egan, Cuadrilla’s Chief Executive, said:

“We’ve been working hard to assess our site options and have undertaken extensive technical and geological analysis. As a result of this work, we have decided to focus on just two sites at this time. This will allow us to reduce the potential impact on the local area during exploration while still gathering the important information we need to determine how much gas could be recovered. We’re committed to being a good neighbour and to talking with the community at every stage of the process.”

Plans to investigate the Lancashire area for the production of shale gas were first announced in 2012 and recent studies have shown that there is an increase in support for gas exploration in Lancashire.

Oil giant BP has argued that the use of shale gas is a more cost effective of replacing coal and reducing greenhouse emissions than the use of renewable energy. However, green groups have stated their concerns over how damaging the extraction of shale gas or fracking might be to the countryside.

And in a further push to promote shale gas exploration, some fracking companies are offering local communities £100,000 along with a percentage of the revenues from the shale gas production.

Manufactures invited to 2014 Expo

For all manufactures, getting the opportunity to offer their products and services to countries outside of the UK can be essential for a growing a business. In October, an industry expo is planned to help companies from around the world to establish new contacts in the Russian market.

Russian-based PVC Expo is inviting companies to book a stand at the 13th International Exhibition for Pumps, Compressors Valves, Actuators and Engines. The Exhibition is due to be held in Moscow from the 28-31 October, 2014.

The event will be held at the Crocus Expo International Exhibition Centre, which was opened in Moscow a decade ago and offers a state-of-the-art venue.

Past events have proved to be a huge success, attracting companies from more than twenty two different countries and nearly 6000 visitors. The expo offers companies the opportunity to make new contacts and create new business; experts are on site to help get business discussions moving.

It also presents the chance to meet with industry experts in Russia as well as to learn about the competitors that a business attempting to get into the Russian market would face. In addition, it gives UK manufactures the chance to learn more about the market and to gain business relationships to help secure contracts in Russia.

The expo is divided into four different categories, with one section dedicated solely to the valve industry. Here, businesses have the opportunity to promote themselves, get contacts and offer their products and services directly to the Russian market.

As part of the exhibition, manufactures from the valve industry will be able to demonstrate their products and gain vital information on marketing trends, as well as promote their products to potential buyers; the exhibition will also present the opportunity to learn more about the latest developments in the industry and the newest available technologies.

According to statistics from last year’s exhibition, more than 40% of companies from the 2013 show were able to gain extra business from their time spent at the show.

PVC Expo has also detailed how exhibiting at the event had enabled companies to develop a much better understanding of the market and some have gone on to work in partnership with their existing customers, helping to increase turnover and boost trade.

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