Grand Energy – Oil and Gas Growth

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Grand Energy Oil and Gas Growth
The oil service sector has attained the status of
bullish after a period of stagnation. For the
first time in roughly two years, the oil service
sector can be proud of the growth and projections
ahead of it. Oil and gas, particular in U.S.
markets, is set to enjoy higher growth over the
next few years as other sources around the world
are being held hostage for the sake of
international negotiations, arms deals, and
political control.
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As of late, the global oil market is starting to
tighten
Geopolitics have created the environment in which
oil prices are rising at rates faster than
before, and those rates are rising in such a
fashion that expectations are now pinned at 100
per barrel for the year 2018. And there are many
reasons for this. Falkland Oil and Gas Ltd.
successfully mobilized a rig spanning from West
Africa to the Falkland Islands as part of a
drilling program in 2015. Russia, Turkey, and
Europe are currently entangled in the Nord Stream
II debates while Chinese investors are being
considered for significant stakes in Russian
strategic oil and gas fields beyond those located
on the continental shelf. Mexico opened a new
round of bidding in the recent past and Brazil
has issued new energy concessions for the first
time since 2008 with oil and gas licensing having
taken place in May of 2015, an auction which
embodies the new production-sharing agreements
settled the Brazilian energy sector and the
financing from Petrobras.
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• In addition to production, the transportation of
  crude oil, petroleum products, and natural gas
  remains paramount information for all
  oil-producing nations. Transit routes are now
  indispensable lifelines and the shifting demand
  for oil and gas means increased growth for future
  investors. That being said, helping the
  anticipated growth is the fact that the energy
  market received a low SP 500 weight coupled with
  high short-interest which is now indicative of
  the fact that the supply and demand for all oil
  based services is no longer balanced, a claim
  substantiated by the low price to tangible book
  value for oil services and the mid-cycle
  earnings. It is anticipated that as earnings
  bottom for the beginning of 2016, investors will
  start to focus on the full-scale upside, again,
  something substantiated by the low price to
  tangible book value for oil services and the
  mid-cycle earnings.
• Oil rig forecasts have indicated that the U.S.
  onshore market is responding to the higher prices
  of oil in a very early cycle fashion. The reason
  for this is that it is the one market wherein
  capital formation is actually growing and where
  the commodity outlook demands a drilling response
  faster than the current upstream industry is able
  to delivery with organic cash flow.
• The distress currently felt in waves across the
  oil and gas market is a blessing in disguise,
  something which will translate directly into
  accelerate recovery as soon as demand increases,
  something that geopolitics dictates will happen
  within the next two years. With tighter supply
  and aging equipment among HHP, contractors are
  going to be called in to replace outdated
  equipment with new builds. This projection will
  accompany the timeline of higher demand, and
  demand for balance for HHP in particular.
• Offshore driller stocks are set to benefit from
  the increasing fund slows into the energy sector,
  more than other improvements in the fundamentals
  of the industry. Because of the sheer size of the
  oversupply within the offshore rig market at
  present, in tandem with the reduction in stacking
  costs, this segment market is not set to show
  improvement until the year 2018 after which the
  industry will continue to earn its projected
  growth rates.