Black gold - a chink of light?
Jinfo Blog

By Joanna Ptolomey

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I am generally an optimistic sort, but even my patience is being tested by gloomy world economic predictions. Let’s rub some salt into that wound with my weekly family grocery shopping bill – how much for food basics? And let’s not even go near the cost of power.

I take refuge in the Sunday papers along with a restorative cup of tea. Even I am surprised at some good news feelers offered up by a UK Observer editorial yesterday – world economy and new opportunities beyond Europe? It warms me somewhat.

OK small pickings in a bad week, or has that been bad years? However, I have been finding some glimpses of good industry news on the Livewire throughout 2011 especially in energy sector services. In April we reported increased energy spending forecasts by Barclays in 2011 and in July new specific seismic technology and reporting products. This month also sees the world’s largest seismic surveyor of oil fields, CGGVeritas, reporting a profit from the third quarter and strong demand for equipment.

A Bloomberg article reports that oil companies plan to spend more on exploration and production in the second half of 2011. CGGVeritas conducts the seismic studies and sells equipment to estimate the size of oil and natural gas deposits. With the US administration announcing plans for 15 off-shore oil lease sales from 2012-17 in the Gulf of Mexico and the Alaska coast, this could indicate that demand is growing in this sector.

Some interesting fiscal reporting from Dawson Geophysical too with 2011 showing increased demand for their oil and gas services with their order book at the highest since 2008. They have also invested in state of the art seismic equipment in order to help clients cost effectively and identify gas and oil reserves.

Is the energy sector showing signs that demand is returning for speculation and making assessment of risks?  Well, there does seem to be a chink of growth – could that black gold be oiling the global economy? Let’s hope so.

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