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Hilbroy Advisory: Libya's revolt squeezing world oil supplies
Hilbroy Advisory: Libya's revolt squeezing world oil supplies
Saudi Arabia, which holds the majority of the world's global reserve capacity, is already thought to be producing extra 1m barrels per day (mbpd) to make up for the shortfalls from Libya.
Montreal,
Quebec,
Canada
(prbd.net)
10/03/2011
Montreal, Quebec, March 9, 2011– Hilbroy Advisory Inc. (DeutcheBörse: 2H0) Hilbroy Advisory Reports: The world faces an oil supply crunch, according to oil services companies who have most to gain from surging prices and the unrest in north Africa and the Middle East.
Ayman Asfari, the chief executive of FTSE 100-listed company Petrofac, said if production were entirely shut off from Libya, only a "very thin" margin of spare capacity to pump more oil would be left.
Saudi Arabia, which holds the majority of the world's global reserve capacity, is already thought to be producing extra 1m barrels per day (mbpd) to make up for the shortfalls from Libya. On Tuesday, Opec was said to be considering whether to hold an emergency meeting to increase the cartel's production. The price of Brent crude fell $2 in the morning to $113 a barrel on the news.
Keith Cochrane, chief executive of oil, mining and power services group Weir, said if Opec were forced to eat into its reserve capacity by pumping more for a sustained period, members would have to boost capital spending on oil and gas production to restore their capacity margin.
Before the unrest swept North Africa and the Middle East, oil producers – primarily Saudi Arabia – could pump just less than five extra barrels for every 100 they were already producing. Of this 4mbpd reserve capacity, about 1mbpd has been taken out by the fighting in Libya. If Libya's 1.6mbpd production were cut off, it would leave a reserve margin of less than 3%, which Asfari said was very thin.
Oil services companies are reporting record results and order books. On Tuesday, FTSE 100-listed Weir Group announced group earnings were up 57% last year, with its oil and gas business more than doubling profits. Orders for its upstream business last year increased by a record 215%. The chief executive of Amec, Samir Brikho, said the recent spike in profits was not a factor. "All IOCs [international oil companies] and national oil companies have announced bigger spending plans in 2011 so far than 2010. It's not a case of companies saying, 'Libya is burning, so now we increase spending'. When you are spending $20-25bn each year, they have a long term strategy, they have a yearly budget."
About Hilbroy Advisory Inc.
Hilbroy Advisory Inc. is a Canadian based advisory and consultancy services company founded in 2000. Our Company provides publicly traded and private companies, institutions and individuals with a series of advisory services enabling these companies to fully reach their corporate objectives and potential.
Our specialists will customize a service package that includes reviewing, identifying and recommending a series of specific action and tasks that help their clients’ management decisions when seeking
• Go Public strategy,
• Debt and or equity financing
• Identify prospective investors
• Hire investor relations firm
• Cross listing decisions
• Planning road-shows and promotional campaigns.
Hilbroy Advisory has established numerous international relationships over the years with Broker Dealers, Hedge Funds, Institutional Investors, High net worth Investors as well as with investor relations firms and consultants. These relationships are made available to all Hilbroy clients and our team will manage the relationships from introduction to post financing activities.
Contact:
Jean François Amyot
HilbroyAdvisory, Inc.
1400 rue Begin
Montreal, QC H4R 1X1
info@hilbroyadvisory.com
www.hilbroyadvisory.com
Tel: 514-334-3131
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About
Hilbroy Advisory Inc. is a Canadian based advisory and consultancy services company founded in 2000. Our Company provides publicly traded and private companies, institutions and individuals with a series of advisory services enabling these companies to fully reach their corporate objectives and potential.
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