Jul 2000

The worldwide chemicals business has been in a down-cycle for four years, and profits have been cut further by the costs of radical restructuring moves. But there are hopes that this year will see an improvement in the business climate.

So far this year, production of oil has lagged behind official forecasts of a modest increase on last year’s output.

A scenario in which the liberalisation of the European electricity sector will lead to the emergence of a small group of dominant players through M&A activity was outlined at a recent conference in Berlin sponsored by Petroleum Economist and Allen & Overy. David Townsend reports on some of the fundamental changes sweeping the industry

Ask terminal operators around the country how their business is doing, and you’ll get an assortment of answers. Those that have throughput terminals on the Gulf or West Coast will probably have positive things to say, while operators that have storage tanks in some other regions won’t paint such a rosy picture.

The fortunes of the mineral wealth of the Caspian Sea and surrounding countries have always been as much about politics as markets and this is as true today as it was 100 years ago, when oil was first found in Baku. Now, despite hopes for rapprochement between the US and Iran, it appears that the fortunes and future wealth of the Caspian nations will very much still be a part of international diplomacy.

With its giant Maui gasfield in decline, the country is threatened with a severe gas-supply shortfall before 2010, reports Paul Hueper from the North Island

The European electricity market is gearing up for liberalisation and competition and the invasion of a risk management culture. Unlike in the Cavafy poem, there will be no last minute reprieve and the “barbarians” will come, to some countries faster than others. The UK, with Sweden and Finland, is at the vanguard of the encounter with fully free market forces and over the next six months will demonstrate the outcome of an “if you can’t beat them, join them” stance, writes Liz Bossley.

Despite maintaining a high economic growth rate, Cuba has kept its oil consumption to a minimum. But is the island on track for a permanent system of austerity or for a chaotic transition in the post-Castro period.

Across North America, the petroleum industry is shedding its old economy cocoon and embracing the New Age, certain that e-commerce and e-procurement will soon account for billions of dollars in annual trade.

The past year has seen a sense of realism enter discussions about the Caspian’s prospects. And recent discoveries have increased the pressure to develop export infrastructure.

The pace of restructuring the oil and gas sector shows no sign of slowing down, with two more leading independents snapped up.

ENERGY is again back on the political agenda in Europe. Aside from connected issues, such as climate change, with which the EU has been concerned for some time, politicians in Brussels are looking seriously at the routes of energy supply to Europe.

THE World Petroleum Congress (WPC) being about little more than networking, expectations that a new direction for the industry might emerge from Calgary 2000 were far from the mark. Representatives from countries with oil potential were there to meet Calgary-based potential investors and vice versa. Canadian delegates made up by far the largest contingent at the WPC; the rest of the world was thinly represented. The host country outnumbered even the US, writes Derek Brower from Calgary.