In an email, Senior M&A Analyst for Enverus Andrew Dittmar noted that the more positive economic outlook has had the effect of making privately-held companies like Alta more attractive takeover targets: “The splurge in private company buying is likely being fueled by a rosy outlook for economic activity in 2021 driving commodity prices higher,” Dittmar noted. acquiring DoublePoint Energy in the Permian, and now this deal.”, Enverus expects the trend of consolidation across the shale basins to continue throughout 2021, citing the likelihood of strong commodity prices and the highly-fractured ownership in those regions, that Dittmar says leaves “...additional running room for further deals that should benefit producers by building economies of scale.”. production/supply, natural gas, liquid fuels, crude oil, oil/petroleum, Have a question, comment, or suggestion for a future article? EIA’s forecast for crude oil production is separated into three regions: the Lower 48 states excluding the Federal Gulf of Mexico (GOM) (81% of 2019 crude oil production), the GOM (15%), and Alaska (4%). Despite the March uptick, the outlook is not good for tight oil production in the state, with only 14 rigs running (source: Baker Hughes). The Zacks Oil and Gas - Drilling industry is an 8-stock group within the broader Zacks Oil - Energy sector. Monthly and yearly energy forecasts, analysis of energy topics, financial analysis, congressional reports. Despite the issues confronting the industry, 75 percent of respondents believe the industry will be better (44%) or about the same (31%) one year from now. During this time, David has led numerous industry-wide efforts to address a variety of issues at the local, state and federal level, and from April 2010 through June 2012, he served as the Texas State Lead for America’s Natural Gas Alliance. EIA forecasts the Henry Hub price will increase from $2.00 per million British thermal units (MMBtu) in 2020 to $3.01/MMBtu in 2021 and to $3.27/MMBtu in 2022, which will likely prompt an increase in Appalachia's natural gas production. U.S. Is digital transformation in oil and gas inevitable? February 4, 2021 © 2021 Forbes Media LLC. The industry has also seen an increase in safety and training technologies and, in relation to the current pandemic, a higher demand for personal protective equipment (PPE). EIA's free and open data available as API, Excel add-in, bulk files, and widgets. The outlook for the oil and gas industry in 2021. Oil and gas 2021 deals outlook improving as the industry recovers Over the last twelve months (LTM) there were 82 oil and gas deals totaling $122.9 billion, down 41% year-over-year with 80% of deal value occurring in 2H, and led by mega deals in upstream and downstream. The pandemic has made the answer straight. Corporation announced a $2.925 billion takeover of privately-held Alta Resources, a move that will provide EQT with a large footprint in the Marcellus Shale region sweet spot in Northeast Pennsylvania. Oil 2021, the IEA’s latest medium-term outlook, explains why. As more new wells come online later in 2021, new well production will exceed the decline in legacy wells, driving the increase in overall crude oil production after the first quarter of 2021. In its January 2021 Short-Term Energy Outlook (STEO), the U.S. Energy Information Administration (EIA) forecasts that annual U.S. crude oil production will average 11.1 million b/d in 2021, down 0.2 million b/d from 2020 as result of a decline in drilling activity related to low oil prices.A production decline in 2021 would mark the second consecutive year of production declines. David Blackmon is an independent energy analyst/consultant based in Mansfield, TX. In fact, while natural gas prices during 2021 may have an increase of 20 or 30% (the low starting point makes this level of increase a fairly minor positive), oil prices will likely meander around in the 40-to-50-dollar range. Opinions expressed by Forbes Contributors are their own. Rystad projects that hydrocarbon sales from wells in the Permian Basin alone could reach $110 billion, and also factors in estimates for all shale and tight wells in the Bakken, Niobrara, Marcellus and Anadarko regions of the country. The MVP is scheduled to enter service in late 2021, delivering natural gas from producing regions in northwestern West Virginia to southern Virginia. Also important: Rystad sees corporate fiscal discipline in the sector continuing throughout 2021, saying in a release that “While hydrocarbon sales, cash from operations and EBITDA for tight oil producers are all testing new record highs in the $60 per barrel WTI environment, capital expenditure is not growing exponentially as producers remain committed to maintaining operational discipline.”, Artem Abramov, head of shale research at Rystad Energy, adds, “Corporate reinvestment rates are generally expected to be in the 60-70% range this year due to debt servicing and hedging losses.”. Energy & Financial Markets: What Drives Crude Oil Prices? Tools to customize searches, view specific data sets, study detailed documentation, and access time-series data. martin thomas loomans says: March 14, 2021 at 11:02 am. You may opt-out by. Short, timely articles with graphics on energy, facts, issues, and trends. For 2021, world oil demand is expected to increase by nearly 6.0 million b/d from 2020, or 7%, to average 96.5 million b/d. The improved stock prices also give public buyers a more potent currency when forking equity over to their private counterparts.”, Dittmar also notes that the same economies of scale and proximity of operations considerations that have driven so many recent Permian-based mergers are also key drivers to the EQT/Alta deal: Consolidating production and acreage has been a core focus for E&Ps looking to capture economies of scale and reduce their cost structure,” Dittmar said. 2021 Outlook Despite the issues confronting the industry, 75 percent of respondents believe the industry will be better (44 percent) or about the same (31 percent) one year from now. World Oil Supply And Price Outlook, March 2021. Turmoil and Transformation is an industry benchmark study on the outlook for the oil and gas industry in 2021. U.S. Energy Information Administration | Short-Term Energy Outlook April 2021 2 • EIA expects global oil inventories to fall by 1.8 million b/d in the first half of 2021. Zacks Industry Rank Indicates Bearish Outlook. Energy use in homes, commercial buildings, manufacturing, and transportation. The ongoing consolidation in the industry continued this week with another big merger. EIA expects crude oil production in the U.S. Lower 48 states to decline through the first quarter of 2021 and then increase through the rest of the forecast period. Oil-and-Gas Pipeline Steel Market Future Outlook of Statistics on Industry Growth till 2027. rmoz May 11, 2021. The domestic oil and gas boom of 2021 continues into May, driven by strong crude oil prices that most analysts think will get stronger, recovering global demand, and by fiscal discipline being practiced by the big shale producers. One important caveat, though: Rystad adds that the shale business might not reach record-setting revenue until 2022 due to losses suffered in hedging programs that tie some companies’ production to lower than current market prices. Maps, tools, and resources related to energy disruptions and infrastructure. May 03, 2021 (Heraldkeepers) -- Projected and forecast revenue … Send your feedback to, Residential Energy Consumption Survey (RECS), Commercial Buildings Energy Consumption Survey (CBECS). Includes hydropower, solar, wind, geothermal, biomass and ethanol. The increase in production led to higher volumes of natural gas in storage and a decrease in natural gas prices. The Zacks Oil and Gas - Production & Pipelines is a 13-stock group within the broader Zacks Oil - Energy sector. That outlook had many oil producers planning to drill more wells so that they could capture higher prices. Crude oil, gasoline, heating oil, diesel, propane, and other liquids including biofuels and natural gas liquids. Rapid changes in behaviour from the pandemic and a stronger drive by governments towards a low-carbon future have caused a dramatic downward shift in expectations for oil demand over the next six years. Trends Transforming The Oil and Gas Industry Outlook in 2021 A count of 650 to 700 by year’s end seems possible, though, and that would be a healthy situation for everyone involved. Greenhouse gas data, voluntary reporting, electric power plant emissions. Come test out some of the products still in development and let us know what you think! Forms EIA uses to collect energy data including descriptions, links to survey instructions, and additional information. State energy information, including overviews, rankings, data, and analyses. Apr 15, 2021 (Heraldkeepers) -- The AI in Oil and Gas market report provides a detailed analysis of global market size, regional and country-level … In addition to client-related work, David also maintains a growing media communications practice. February 8, 2021 EIA projects renewables share of U.S. electricity generation mix will double by 2050. Subscribe to feeds for updates on EIA products including Today in Energy and What's New. Interestingly, this one was not centered in the Permian Basin, where so much industry M&A activity has taken place over the past few years. Regarding their own business outlook for 2021, about 70 percent are neutral (38 percent) or positive (33 percent), while nearly one-third are negative. The impact of the 2020 crisis is, however, expected to have repercussions on the medium-term growth potential, resulting in about 75 bcm of lost growth … Definitely. The fall in production will reverse in 2022, when EIA estimates that natural gas production will rise by 2% to 97.6 Bcf/d. In 2021, as renewable penetration on the grid increases, green hydrogen development is expected to follow because of its potential to act as seasonal storage of fuel available on demand to generate power for grid balancing. All Rights Reserved, This is a BETA experience. EIA estimates that annual U.S. marketed natural gas production will decline another 2% to average 95.9 billion cubic feet per day (Bcf/d) in 2021. 1,010 senior oil and gas professionals surveyed; 79 countries represented; February 11, 2021 EIA’s AEO2021 shows U.S. energy-related CO2 emissions rising after the mid-2030s. Sign up for email subcriptions to receive messages about specific EIA products. Reports requested by congress or otherwise deemed important. Zacks Industry Rank Indicates Gloomy Outlook. Comprehensive data summaries, comparisons, analysis, and projections integrated across all energy sources. Tags: He is the resident energy expert on the "In The Oil Patch" radio program, and executes frequent public speaking engagements around the state of Texas and at conferences. Oil and Gas Industry Outlook 2021 Exploring oil and gas trends and the impact of COVID-19 The oil and gas industry is used to the highs and lows of economic cycles. However, natural gas production in Appalachia may be limited by pipeline constraints in 2021 if the Mountain Valley Pipeline (MVP) is delayed. The real reason the gas prices are going up at the pumps is that the sheiks realize that as soon as the ev’s dominate, the need for their oil will decrease infinitely! The deal will add 1 billion cubic feet of natural gas production per day to EQT’s portfolio, and will generate $550-$600 million projected annual adjusted EBITDA for the company. Posted March 23, 2021 Canada’s oil and gas industry workforce can expect to see some further contraction in 2021 but modest employment growth will follow over 2022 and 2023, says a labour market outlook recently released by PetroLMI. The text or links to all of David’s writings and podcasts can be found at www.dbdailyupdate.com. Like exploration and production companies, refiners, and others in the energy space, midstreamers have seen their well-considered plans for 2020 … operates October 26, 2017 in Robinson Township, Pennsylvania. The downturn caused by COVID-19, however, is unlike any other. Between 2019 and 2021, employment within the industry decreased in … The United States set annual natural gas production records in 2018 and 2019, largely because of increased drilling in shale and tight oil formations. Demand - After a 4% drop in 2020, natural gas demand is expected to progressively recover in 2021 as consumption returns close to its pre-crisis level in mature markets, while emerging markets benefit from economic rebound and lower natural gas prices. David has enjoyed a 39-year career in the oil and gas industry, the last 23 years of which were spent in the public policy arena, managing regulatory and legislative issues for various companies, including Burlington Resources, Shell, El Paso Corporation, FTI Consulting and LINN Energy. In 2020, marketed natural gas production fell by 2% from 2019 levels amid responses to COVID-19. EQT About the research. Sales, revenue and prices, power plants, fuel use, stocks, generation, trade, demand & emissions. David Blackmon is an independent energy analyst/consultant based in Mansfield, TX. How big could it become? The oil and gas industry experienced significant changes throughout 2020, from digital transformation to cloud migration. The oil industry entered 2020 with the wind seemingly at its back. Exploration and reserves, storage, imports and exports, production, prices, sales. Regional energy information including dashboards, maps, data, and analyses. Uranium fuel, nuclear reactors, generation, spent fuel. Maps by energy source and topic, includes forecast maps. EIA estimates that natural gas inventories ended March 2021 at nearly 1.8 Tcf, which is 2% lower than the five-year (2016–20) average. in accounting in 1979. Forecast increases in global oil supply will contribute to a mostly balanced market during the second … These factors and more also leave additional running room for the U.S. oil and gas boom of 2021 to keep running into 2022. PXD To access the remainder of Let's Get It Started - The 2021 Outlook For Permian Oil and Gas Markets you must be logged as a RBN Backstage Pass™ subscriber.. Full access to the RBN Energy blog archive which includes any posting more than 5 days old is available only to RBN Backstage Pass™ subscribers. The domestic oil and gas boom of 2021 continues into May, driven by strong crude oil prices that most analysts think will get stronger, recovering global … As part of the deal, EQT also acquired significant midstream assets consisting of about 300 miles of owned and operated gas gathering lines with 630 MMcf/d throughput capacity, as well as a 100-mile freshwater system with 255 million gallons of storage capacity. Energy-Related Carbon Dioxide Emissions, Energy-Related Carbon Dioxide Emissions at the State Level, through 2018, New fossil fuel consumption by source and sector chart for 2020, Underground Natural Gas Working Storage Capacity, Monthly Crude Oil and Natural Gas Production ›, Midwest and Rocky Mountain Transportation Fuels Markets, East Coast and Gulf Coast Transportation Fuels Markets, U.S. oil and natural gas production to fall in 2021, then rise in 2022. Corporate and asset deals were roughly equal based on deal value. Are oil and gas trends 2021 worth considering? Global Oil and Gas CAPEX Outlook Report 2021: Growth, Trends, and Forecast 2020-2025 - Upstream Sector to Dominate the Market - ResearchAndMarkets.com Read full article April 7, 2021… Financial market analysis and financial data for major energy companies. A production decline in 2021 would mark the second consecutive year of production declines. International energy information, including overviews, rankings, data, and analyses. Companies are still struggling to generate breakeven cash flow, which resulted in a brief wave of mergers and acquisitions (M&A) in the U.S. upstream space. So, make sure you drive your efforts in the right direction. He attended Texas A&I University and The University of Texas, earning B.A. The MarketWatch News Department was not involved in the creation of this content. 2021 Outlook. (Photo by Robert Nickelsberg/Getty Images). This can be best viewed in our Supply Projection dashboard: Tight oil outlook in North Dakota, based on the current rig count and well/rig productivity. Responses to the COVID-19 pandemic led to supply and demand disruptions. 1 . “In addition, a strong rally in public E&P equities in late 2020 and early 2021 has shifted the value proposition between public and private acquisitions with public companies now appearing relatively more expensive. “While in 2020 this nearly entirely took the form of public-public E&P consolidation, in 2021 the focus so far has been on rolling up private operators. On Thursday, Pittsburgh-based EQT Reserves, production, prices, employment and productivity, distribution, stocks, imports and exports. EIA expects crude oil production to increase in 2022 by 0.4 million b/d because of increased drilling as prices remain at or near $50 per barrel (b). February 16, 2021 Growing industrial consumption and exports support future U.S. natural gas market growth. ... but that has to worry the total oil industry! (Photo by Robert Nickelsberg/Getty Images), The Leukemia & Lymphoma Society BrandVoice, The Next Step | Small Business Video Series, Panic Buying Is Causing Fuel Shortages Along The Colonial Pipeline Route, Electric Cooperatives, The Lone Shining Utility Star Of The Texas 2021 Winter Storm, Colonial Pipeline Cyber Attack Points To Larger Security Concerns, The Colonial Pipeline Outage: An Important Lesson For US Energy Security, The Colonial Pipeline Hack Is A Problem Not A Crisis, After Colonial Cyberattack, Time For Oil Traders To Reassess Risk, Pipeline Cyber Attack Demands Reevaluation Of U.S. Infrastructure Security, FBI: Colonial Pipeline Hacked By ‘Apolitical’ Group DarkSide. Homes, commercial buildings, manufacturing, and other liquids including biofuels and natural gas takeaway capacity in industry..., when EIA estimates that natural gas liquids gas assets in the creation of this content uranium fuel nuclear! 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