Energy Sector - Oil and Gas - October 2016

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This presentation looks at oil and gas sector including production, pricing and government policies.

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Energy Sector - Oil and Gas - October 2016

  1. 1. Energy Sector – Oil and Gas – October 2016 By: Paul Young, CPA, CGA
  2. 2. Paul Young, CPA, CGA – Bio • CPA, CGA (1996) • 26+ years in Corporate Finance, Strategy, Risk Management, Internal Control and Audit, Costing, Process Improvement, Taxation and Financial Solutions • 8+ years teaching advance management information system, advance accounting and public finance
  3. 3. Agenda • Oil Rigs • Commodity Price • OPEC • USA Energy Sector • Canada Energy Sector • USA Refinery Capacity • Key Policies
  4. 4. Oil Rig Count • Source – Baker Hughes
  5. 5. Commodity Price – Oil and Gas • Source – BMO
  6. 6. OPEC and Oil Prices • The U.S. Energy Information Administration on Wednesday said U.S. crude inventories declined by 3 million barrels in the week ended Sept. 30, falling for the fifth straight week. It was another sign that demand is catching up with the oversupply of crude that caused prices to collapse in 2014. • But the OPEC deal took oil-market observers by surprise after two years of indecision from the cartel. Analysts said it raised the question of whether Saudi Arabia was reversing its policy of fighting for market share in the era of low crude prices. • According to the people familiar with the matter, Prince Mohammed didn’t authorize a sea change in Saudi Arabia’s market- share strategy. While Saudi Arabia will take on the bulk of OPEC’s proposed cuts, slashing up to 400,000 barrels a day by the end of the year, the kingdom was planning to make those cuts anyway, the people said. • Saudi energy minister Khalid al-Falih could only offer to bring the kingdom down from record highs this summer to more sustainable levels that were pumped in the spring, the people said. Source - http://www.wsj.com/articles/how-a-saudi-royal-sparked-an-opec-deal-and-sent-oil-prices-past-50-1475763151
  7. 7. USA Energy Sector • Crude and product stocks drop 11 million barrels. • Product demand and exports spike. • Trends affected by price expectations prior to OPEC meeting. • Crude stocks likely to begin building, product stocks to continue dropping. Source - http://seekingalpha.com/article/4010369-u-s-petroleum- product-exports-spike-making-u-s-leading-petroleum-exporting- country
  8. 8. Canada Energy Sector Source - http://ca.reuters.com/article/businessNews/idCAKCN1251NV or https://www.neb-one.gc.ca/nrg/sttstc/crdlndptrlmprdct/stt/stmtdprdctn-eng.html
  9. 9. USA Refinery Capacity Source - http://www.eia.gov/dnav/pet/pet_pnp_unc_dcu_nus_m.htm
  10. 10. Key Issues • Canada Carbon Taxation - http://www.slideshare.net/paulyoungcga/what-is-carbon-tax-or- a-price-for-carbon or http://www.cnn.com/2016/10/04/opinions/sutter-canada- carbon-tax/ • Canada LNG Approval - http://thetyee.ca/Opinion/2016/09/28/Trudeau-LNG-Approval- Difference/

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