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The Europe Oil & Gas Sectors : A Company and Industry Analysis (March 2004)

  • ID: 656318
  • Report
  • March 2004
  • Region: Europe
  • 40 pages
  • Mergent
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Current Environment - Key Points
- Europe's four largest economies accounted for 70,000 barrels per day (kb/d) during October 2003
Gains in France, Germany and the UK were offset by cuts in Italy in October 2003
In Germany, a milder-than-normal winter resulted in 190 kb/d cuts (after upward adjustments of 110 kb/d in September 2003), causing downward adjustments of 340 kb/d
- European oil supply rose by 395 kb/d in December 2003, significantly less than the near one million barrel per day (mb/d) increase recorded in October and November
- Gasoline and residual fuel oil gained in November
Gasoline inventories rose as refinery output increased, while at the same time demand contracted
Tight shipping limited arbitrage opportunities to the US, keeping stocks in Europe
- Prices surged to near US$35 in early January 2004 due to a steep decline in US crude oil stocks
This was supported by colder weather in the US and surging natural gas prices, strong economic growth and robust product demand in Asia
- The Iraqi war, the Russian oil crisis of 2003 and overstating of reserves by Shell were two major shocks to the oil and gas sector
Industry Profile - Key Points - In Europe, Russia held the most reserves in both oil and natural gas, according to the BP Statistical Review of World Energy
- The sector has three main categories: exploration and production (extraction); refining and marketing; and equipment and services
Price remains the major determinant of exploratory and production activities in the sector
- The state usually takes ownership of these resources due to the sector's capital intensiveness
Some European countries which no longer depend on oil and gas exports have taken administrative roles in managing their resources, while less wealthy nations have taken on more direct involvement in the sector
There has been more privatization resulting in majority state-ownership to full privatization
- Oil is taxed highly to generate windfall for the state
Market Trends and Outlook - Key Points
- Russia has become a major player in Europe stemming from reforms, improved sentiment and favorable conditions (including European import demands)
- The depletion of resources is the reason for improved sentiments on renewable energy sources
International Energy Agency (IEA) trends suggest the increased importance of renewable energy and the potential for new markets in alternative energy
- Technology has been used for the successful exploration and extraction of fossil fuels
In addition, it has helped make exploration and production activities safer
- As the industry becomes more environmentally friendly, lead (Pb) is being replaced
However, the replacement cost varies from vehicle to vehicle and some substitute fuels such as gasohol may cause more harm to the environment
- The fall in the US dollar will have a negative impact on the global economy in the long term despite short-term gains by countries whose currencies have appreciated
The depreciation of the US dollar will slow global business activities, stagnating economic activities and growth
- Russia will be the prominent supplier for most European countries- energy needs
Cooperation between oil producing nations and cartels must continue to ensure price stability

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Current Environment
- Sector Overview
- Sector Performance
- Rig Counts
- Leading Companies
- Alliance Activities
- Shocks to the Oil and Gas
Industry
Industry Profile
- Industry Data
- Areas of Oil and Gas Reserves
- Areas of Business Focus
- The Privatization Drive
- Taxes to Generate Revenue
Market Trends and Outlook
- The Russian Domination
- Sourcing Renewable Resources
- Technology Aided Exploration
- The Cost of Being
Environmentally Friendly
- The Weakening US Dollar
- Market Outlook
Country Profiles
- France
- Germany
- Norway
- Russia
- Spain
- United Kingdom
Currency Table
The Scope of this Report
Key References
Comparative Data
Sales Contacts

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