A glowing outlook.
an equity
exchange
OilGasSX. A focused, fit-for-purpose Stock Exchange created specifically for the oil and gas industry and therefore becoming the definitive source of oil and gas data globally.
Why does the market need OilGasSX? For the past half century, large players have dominated energy markets. Today, technology is spawning many smaller operators at the same time as new sources of capital emerge. Public markets and governments were once the only investors in the energy sector. But with many governments now cash-strapped, pension funds and private-equity firms are taking up the slack. In the past five years, private equity firms invested more than $200 billion in the sector, matching new ideas and business models with capital hungry for returns. This fragmentation is diminishing the power of scale to shape markets. Nikhil Patel, Thomas Seitz, and Kassia Yanosek for the McKinsey Quarterly http://www.mckinsey.com/industries/oil-and-gas/our-insights/three-game-changers-for-energy
explosive
innovation
OilGaxSX offers a unifying source of capital and data as well as a platform on which companies of all sizes can make the most of these resources.
Innovations in the Oil and Gas sector are making it harder to gather meaningful data, which has a knock on effect on regulation:
A large number of shale gas and oil producers in North America, for example, make uncoordinated decisions about supply, challenging the ability of the Organization of Petroleum Exporting Countries to influence prices. Large utilities have to factor into their strategies the growing number of cities, businesses, and households that generate their own energy from renewables, often selling surplus back to the grid. And governments could find it harder to implement effective regulation. Rules around drilling, water disposal, and public health and safety are already being tested in North America because of the speed at which the number of oil and gas producers has grown. And distributed power generation has sparked regulatory questions about how to charge grid users equitably. Assuming it is wealthier consumers who can afford to install solar panels, the cost of maintaining the grid falls to a smaller number of less affluent households.
Nikhil Patel, Thomas Seitz, and Kassia Yanosek for the McKinsey Quarterly
http://www.mckinsey.com/industries/oil-and-gas/our-insights/three-game-changers-for-energy
prediction issues
Forecasting in this sector has become increasingly difficult:
“The energy world has always been far easier to write about in hindsight than to try to project into the future. In recent years, we’ve seen even some of the industry’s most astute observers end up being spectacularly wrong in their projections: Witness the late Matt Simmons’ long flirtation with “Peak Oil” theory and his assertions the Saudis were about to run out of oil of a decade ago, and the prediction by T. Boone Pickens of $70 oil by the end of 2015 to name just a couple.”
David Blackmon Forbes
http://www.forbes.com/sites/davidblackmon/.../the-oil-and-gas-situation-a-preview-of-2017In turn the effect on capital markets for the oil and gas sector is significant:
As scale in some areas diminishes in importance, agility takes precedence. With so many players interacting in so many different ways in so many different locations, it is harder than ever to predict the future. Billion dollar investments in assets that must be productive for three decades or more become far too risky. Instead, companies will need to make smaller initial investments and be able to adjust their strategies rapidly as circumstances change or local conditions dictate. Local differentiation carries increasing competitive weight. In oil and gas, service providers increasingly tailor their offerings not at the country or even regional level, but basin by basin; power companies may need to consider different strategies for different cities depending on the choice of feedstock and the numbers of residents and businesses producing their own energy
Nikhil Patel, Thomas Seitz, and Kassia Yanosek for the McKinsey Quarterly
http://www.mckinsey.com/industries/oil-and-gas/our-insights/three-game-changers-for-energy
The oil price collapse, which began in June 2014, triggered a wave of cost reduction among upstream businesses. Global oil and gas companies slashed capital expenditures by about 40 percent between 2014 and 2016. As part of this cost-cutting campaign, some 400,000 workers were let go, and major projects that did not meet profitability criteria were either canceled or deferred. These steps, combined with efficiency improvements, are beginning to bear fruit for the industry. A growing number of projects can break even at oil prices in the high $20s.
$620 billion of projects through 2020 are estimated to have been deferred or canceled as a result of the downturn, and the appetite for long-term and complex major capital projects has waned, despite a few notable exceptions. While this trend certainly seems to lower the risk of individual companies in the industry, it may pose some broader questions regarding energy supply and security. Where will supply come from in 2020 and beyond? Are there enough short-cycle projects to fill the supply gap? Will the capital markets support the long time horizons acquired to develop more complex projects?
https://www.strategyand.pwc.com/trend/2017-oil-and-gas-trends
a changing
financial
landscape
The Overall Forecasts are Positive.
In the near future, the recent oil price gains - which are due to a rebalancing of supply and demand fundamentals, partly accelerated by OPEC’s recent decision to cut production - are expected to remain in place. That expectation is behind a number of positive industry forecasts: According to Barclays’s latest E&P Spending Survey, oil and gas industry capital expenditures are expected to increase by as much as 7 percent in 2017. In addition, global rig counts, particularly in the U.S., have been on the rise since the middle of 2016, according to Baker Hughes. Moreover, we are seeing the green shoots of a recovery in M&A as companies have pursued asset deals in recent months.
It’s possible that we might see a spike in oil prices sometime in the next five to 10 years if, because of the hiatus of investment in major projects since 2014, the industry finds it difficult to meet increasing demand. The resulting uncertainty would no doubt be welcomed by traders, who have largely avoided the oil market during its price plunge. An uptick in trading activity could in itself drive up oil prices significantly in the threeto five-year time frame. Oil and gas companies will need to ensure that their business models are prepared to manage and benefit from this volatility
https://www.strategyand.pwc.com/trend/2017-oil-and-gas-trendsBut the industry will change and the focus will become more global.
A great deal of the activity in the oil and gas sector is focused on OPEC countries and the U.S., but other regions may also play a key role in the coming years. For instance, in Latin America, the investment environment is improving. Some domestic oil and gas industries are on the upswing, creating jobs. A prime illustration is Mexico, where energy reform is opening the door for non-traditional operators to establish a presence in the country. In the recent deepwater auction in that country, companies successfully bidding for acreage included China’s Offshore Oil Corporation, Australia’s BHP Billiton, France’s Total, American firms Chevron and ExxonMobil, and Japan’s Inpex.
Other hydrocarbon hot spots include offshore Egypt, where BP recently acquired a stake in Eni’s giant gas field Zohr, and the Caspian Sea, home to Kazakhstan’s Kashagan reserves, the world’s largest oil-field discovery in the past 30 years, where commercial production resumed at the end of 2016. As oil prices rise, private equity is likely to have a bigger hand in the industry. This is already evident in two recent high-profile deals in the U.K.’s North Sea: Siccar Point Energy’s acquisition of OMV’s assets and Chrysaor’s decision to pick up divested assets from Shell.
https://www.strategyand.pwc.com/trend/2017-oil-and-gas-trends
energy
reforming
innovation
embraced
Innovation and Interconnection.
Oil services and efficiency in technology will also become a focus as more teams around the globe are inventive in a sector that traditionally shunned new processes and procedure. Both Oil and Gas producers now desperately need new tech in discovery, extraction, efficiency and regulation. Tech will form a key component to the overall efficiency of extraction and with an interconnected world this seems more likely than ever before in this sector.
https://www.strategyand.pwc.com/trend/2017-oil-and-gas-trendsWhere companies are embracing innovation to improve extraction, efficiency and regulation, OilGasSX brings the same ethos to capital raising.
Oil and Gas companies need to embark on the creation of a new, viable business offering; ideally going beyond the products they extract and market, to a business model which also drives efficiency through the investor and stakeholder experience, which in turn strengthens the company.
OilGasSX combines data about the company, key people, sector analysis, data about the projects and concessions and also the investors. This builds into a rich resource for decision making and forecasting as well as a way of communicating with and attracting investors using minimum effort.
The OilGasSX ecosystem allows information to flow easily to every participant, giving access to all the resources the company needs to grow, mitigating risk and attracting investors.
another level
Automation and advanced analytics deliver ease of reporting and information sharing
The company can embed analysis, data and reasoning into their decision-making processes, becoming an insight-driven organization. Timely and relevant information solves wide range of business problems at all levels of the organization.
They can also take all this to the next level and share some non-sensitive data with key strategic investors directly as opposed to using time consuming and expensive road shows. Transparency and information flow leads to risk mitigation which attracts investors. Digitally delivering data to the board is one level of innovative thinking, but OilGasSX encompasses the investor base too.
With the OilGasSX Supplier Module an investor will be able to read a simple synopsis about a technological advancement, see clearly the supreme advantage for anyone adopting these advancements, and invest accordingly.
Predictive maintenance; setting milestones and monitoring
Our analytics include a matching system which streamlines the research and matches investors to companies based on opt in data so the right investors are looking at the company at the right time.
We’ve taken this one step further with IPO Bidder; a matching engine where companies project their growth path with milestones and attract the institutional support they need to grow their companies. Institutions gain the opportunity to
lock in an advantageous price by committing early to the company and can monitor progress. The company is protected and supported in the ecosystem from the beginning with integrated services from the Capital SuperHighway, which range from business planning, and personnel services to web services. If the company is failing to reach its milestones, these services from the ecosystem can be provided to get them back on track
Digital simulation models; IPO Bidder predicts their results and benchmarks along the way mitigating risk for investors. IPO Bidder asks institutions to log the size, terms, sector and location of its investment preference. It then plays forward the business model and plan of the early stage mines and predicts when these smaller deals may become big enough to be in the sweet spot of the later stage investor. The institutions bid based on a future price based on the established benchmarks and assumptions then watch them play out.
IPO Bidder irons out the time wasted presenting to funds that are not interested. It irons out some of the due diligence as the fund is already watching the team produce on key milestones it said it would. The bids are not obligations until the goals seem achievable and bids are increasing.
The early stage investor sees potential in the bid alone as he has mitigated his risk down to a single question, “Can this team get to this point with the capital they have in the bank?”
If the answer is yes, he has a solid basis to make a decision to invest as opposed to before when these questions were met with too many common sense barriers mentioned above.
IPO Bidder not only takes funding parameters from private equity, hedge funds, private investors and banks but it also looks at acquisitive giants and their parameters should a small deal tip into a big deal and hit the radar of one, which in turn creates an exit opportunity and layers it in early.
Collaboration; Other tools and connections in the ecosystem.
The OilGasSX ecosystem gives companies everything they need to grow and investors everything they need to participate. For more information on these tools see www.capitalsuperhighway.com
The Oil and Gas sector is vital to many other industries. It provides key components in most of our hardware tech and there is no software without hardware. The prices of these components directly correlate to the end price of the hardware. So the Oil and Gas cog in the big industry wheel allows for flow to be more efficient and that is at the heart of the AlliedSX mantra.
Interested in Listing?
Listing costs £25,000 GBP and takes 8 weeks to process. Contact us at Listing@OilGasSX.com or visit the website, www.OilGasSX.com for a qualified listing agent.
Our quotation service is auto on-boarded and allows oil and gas companies to be represented on OilGasSX without services until a full application is made.
We have auto on-boarded over 500 companies to date.
Interested in Becoming a Listing Agent?
To become a Listing Agent send details to agent@OilGasSX.com
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