Jul 2004

Despite the undoubted success of drilling in the US Gulf of Mexico's deep waters, the number of rigs operating in the region and the number of wells drilled are falling. As a result, the region's drilling companies, facing falling rig-utilisation rates, are looking elsewhere for opportunities. Anne Feltus reports

Bilateral negotiations between Russia and the EU over Russia's accession to the WTO took place in Moscow in May. The energy agenda between the two parties was, as always, at the top of the list, writes Andrei Konoplyanik, deputy secretary-general, Energy Charter Secretariat

As production from North Sea oilfields declines, a question mark hangs over the quality of oil that will be delivered through the major oil pipelines. Liz Bossley investigates one possible solution to the problem

Surging gas demand and peaking production in Europe means the continent must look for new supply sources. With no shortage of producers hoping to grab a piece of the action, the supply map may become very complex by 2025, writes Cris Heaton

Falling crude production in recent years has left Asia's only Opec member, Indonesia, as a net oil importer. But plans are under way to lift output and bolster gas exports in a bid to re-assert the country's energy credentials, Martin Clark reports

Uncertainty about incoming EU energy-market regulation could discourage essential investment in gas infrastructure, limiting competition and pushing up prices, writes Gavin Watson, senior lawyer, global projects, King & Spalding International

Investors in Argentina are starting to see the attractiveness of that country's gas market return. Expected shortages in the future are driving forward stalled plans to integrate the Southern Cone's gas markets, although Chile is finding itself increasingly isolated from the process, reports Robert Olson

In some ways, Libya's new model exploration and production-sharing agreement compares favourably with many other production-sharing regimes. But stipulations in some areas, such as those covering local-content requirements and the methodology for determining elements of the profit split, may worry private investors. Nabil Khodadad, Shane DeBeer and Dan Rogers, Chadbourne & Parke, analyse a draft of Epsa-4

Another step towards the phasing-out of nuclear power plants was expected when central European countries joined the EU. However, the new members may further boost an industry that is already experiencing something of a renaissance. NJ Watson reports

With the cost of liquefied natural gas (LNG) processing and transport falling, Russia's remote gas reserves are, for the first time, being viewed as possible sources for LNG projects. The US is seen as the market of choice. Isabel Gorst reports

The rash of attacks on Western interests and civilians in Saudi Arabia have raised concerns about the surety of the kingdom's oil supply in the event of an attack on energy infrastructure. But is the fear premium that is causing spiking oil prices justified? James Gavin reports

With economic growth running at about 8% a year India cannot afford any disruption to the flow of oil into the country. It is spending heavily on buying equity participation in overseas production to secure supplies. Other countries in South Asia are forced to rely heavily on indigenous supplies, reports Derek Bamber

Last year was another slack one for the worldwide chemicals business and only the brave would forecast this year to be better. The cyclicality that plagued the industry in the past seems to have been replaced by a long, low-profit trough, Martin Quinlan writes

As work begins on the country's first LNG receiving terminal, in Guangdong province, international energy companies are watching closely, despite fears of a glut in supply caused by too many projects too soon. Martin Clark writes

New, safe, reliable and cost-effective ways of transporting gas must be developed in response to rapid changes in the dynamics of world gas markets, writes Per Wiggo Richardsen, information manager, Det Norske Veritas, the classification society

Acorn Oil & Gas secured $7.5m to fund pre-development work on the Cragganmore project and appraisal of the Mallory discovery, in July. Liz Bossley talks to Gordon Stein, Acorn's finance director, about the problems the new generation of innovative, small oil companies encounter in funding projects

Australian liquids output continues to decline, as the main producing fields mature. Despite the setback to production resulting from a gas-processing plant explosion earlier this year, the outlook for growth in natural gas output and exports is much rosier, as the country harnesses its huge reserves. Coal, however, remains the country's dominant export fuel. Derek Bamber writes

While the federal government's White Paper on energy policy—Securing Australia's Energy Future—did not contain any major shifts in policy, and introduced several new initiatives, it has caused controversy because of its omissions. Derek Bamber reports

Petrobras found 6.6bn boe in 2003 and could become self-sufficient in oil as early as next year. It is projecting gas-market growth of over 14% a year and will increasingly be able to supply domestic demand from newly discovered domestic gasfields. It plans to raise overseas production from 270,000 b/d to 0.5m b/d before the end of the decade. Inside and outside Brazil, things are looking up. Tom Nicholls talks to Néstor Cerveró, international director, and Francisco Nepomuceno Filho, executive manager, E&P

What dominated Canada's petroleum marketplace from the mid-1990s to 2001, as US-based firms rounded up gas properties at a feverish rate, has turned into a stampede out of the region. WJ Simpson reports

Rehabilitation of the country's northern and southern oilfields holds the key to Iraq's return to plus-3m b/d production capacity. Prime minister Iyad Allawi will find restoring Iraqi oil infrastructure, production and exports at the top of his in-tray. But, as James Gavin reports, this may not prove easy

Almost 40 years after exploration began, Norwegian firms are busy developing two huge gasfields—one of which is the second-largest discovered in the country's offshore, while the other will allow Norway to join the world's LNG producers. Investments in the two projects will total about $16.9bn—most of which is due to be spent in 2005 and 2006. But looking further ahead, work seems patchy, Martin Quinlan writes

An improved economic forecast bodes well for the coming year, but southeast Asian countries will need to huddle together even closer if they are to generate the energy security needed to fuel longer-term economic growth. Martin Clark reports

Global upstream spending will grow steadily in the next year because of continued strong commodity prices. But is the oil-services sector in a position to capitalise on the larger exploration budgets? Derek Brower reports

The US upstream is proving a hive of M&A activity. The retreat of the majors is providing tasty offerings for independents. And, in this high-oil-price environment, the outlook for further asset transfers looks bright. James Gavin reports

Woodside Energy, Australia's largest publicly listed exploration and production company, is 50 years old this year. It celebrates that milestone with considerable momentum behind the ambitious programme of international expansion that has transformed it into a recognised international player. Don Voelte, CEO, and Agu Kantsler, exploration director, talk to Tom Nicholls

Bankruptcy of Yukos is not in the interests of the Russian government, the company's shareholders, management or the international banking community. But the destruction of Russia's biggest oil company continues relentlessly. Isabel Gorst reports

A crucial gas project received the green-light in June and another is under development. But New Zealand faces an energy shortage unless new supply sources are discovered, writes Cris Heaton