IHS Upstream Spend Report

Every day, stakeholders across the upstream value chain have to make crucial investment decisions in an uncertain and ever-changing market environment. In response to this challenge, we are pleased to offer the IHS Upstream Spend Report—bringing together analysis from across the IHS organization to provide the most comprehensive view available of spending trends within the oil and gas industry.

Product Features:

A user-friendly source of vital spending data on new construction projects worldwide. Providing a bottom-up, project-based outlook on oil and gas industry spending.

The IHS Upstream Spend Report provides critical, need-to-know information on how much is being spent in a variety of categories.

Delivered quarterly, each report builds understanding of demand and of global, regional, and sector spending for category-level goods and services. This gives the strategy planner and project-based personnel the tools to assess activity levels in their respective areas and to map the way forward.

The IHS Upstream Spend Report delivers a historical overview and an outlook for capital and operating expenditures. The five-year projection is built on a project-by-project basis that leverages the IHS CERA Capital Costs and Operating Costs Analysis Forums’ and the Market Survey System’s quantitative analysis of service category demand across the oil and gas industry.

Who Uses the Product/Service:

What the Product can do:

How can you gain competitive advantage in a volatile cost and procurement market? Now there’s a single, user-friendly source of vital spending data on new construction projects worldwide. The IHS Upstream Spend Report provides critical, need-to-know information on how much is being spent in the upstream oil and gas market in a variety of categories. Each quarterly report builds out by project with analysis, insight, and five-year cost outlooks on crucial categories of project construction to enable strategic planning:

• Understand where, and on what the money is being spent
• Overview on spend under current economic conditions, and economic outlooks
• Which market segments and geographical areas show the most growth and provide the best opportunities for investment
• Projections that help you plan sales and revenues
• An detailed grounds up objective, third-party view to check against your forecasts

The IHS Upstream Spend Report quarterly updates support strategic planning decisions by providing timely adjustments for the ripple effects of market developments, such as project cancellations or postponements as a result of economic shifts or regulatory drivers.

Benefits:

• Is the only forward-looking, bottom-up study built by project, accessing hundreds of planned projects in IHS databases
• Delivers analysis that leverages the integrated capabilities of IHS CERA, building out global, regional, offshore, onshore, and category spend
• Provides quarterly updated reports based on IHS forecasts of project construction start dates and knowledge of construction schedules and major purchase points
• Builds cost and production outlooks from baseline common foundation assumptions of global economic performance (GDP trends), oil and gas demand, and prices
• Enables any oil and gas operator or service company to understand the market outlook along the value chain
• Is delivered quarterly, to keep abreast of industry and market events changing the project portfolio and pacing of project starts

A user-friendly source of vital spending data on new construction projects worldwide. The IHS Upstream Spend Report provides critical, need-to-know information on how much is being spent in the upstream oil and gas market in a variety of categories.

Report Contents

• Executive Summary
• Methodology
• Key industry drivers
  • Global economic outlook
  • Oil and gas prices
  • Oil demand  and supply
• Global Upstream CAPEX
• Drilling and well services expenditure
  • Onshore vs. offshore
  • Exploration vs. development
  • By region
• Aboveground field development expenditure
  • Onshore vs. offshore
  • Onshore by market segment
  • Offshore by market segment
• Spending by major bulks/equipment categories
  • Rotating equipment
  • Vessels and tanks
  • Heat exchangers
  • Piping
  • Instrumentation
  • Electrical bulks
  • Line Pipe
• Labor and engineering
  • Engineering
  • Construction labor

The Rigor Behind the Numbers

An alternative to oil company surveys the IHS Upstream Spend Report encompasses all new oil and gas developments. Integrating the IHS CERA planning scenario, Global Redesign, each Upstream Spend Report outlook incorporates detailed project estimates and cost and construction projections. Because project timing changes throughout the year, the report analyzes the impact of these shifts each quarter, using the expenditures in each of the categories covered.

The IHS Upstream Spend Report uses a bottom-up approach to modeling demand in the oil and gas industry. This methodology builds on the onshore and offshore project databases of IHS Herold, IHS CERA and IHS Petrodata, with hundreds of project entries. This places IHS in a unique position to fully forecast industry spending trends globally using a bottom-up, project-by-project approach.

Each quarterly report presents a detailed overview of investments and key activity indicators within the industry to provide a solid basis for investment and decision-making needs.

Project Supervisor

Candida Scott, IHS CERA Director, Capital Costs Analysis Forum, is a chartered mechanical engineer with more than 25 years in the oil and gas industry. After her initial formative years in detailed design, construction yards and offshore, she focused on cost engineering, field development planning, and conceptual design. She worked on the conception and development of IHS QUE$TOR estimating system and development of Brown and Root’s FIELDPLAN estimating system. She has considerable international consulting experience and has tracked, monitored, and analyzed trends offshore, onshore, and liquefied natural gas construction projects worldwide since the mid-1980s. She is a member of the IMechE and the Society of Petroleum Engineers. Ms. Scott received her Bachelor of Science degree in mechanical engineering from Leicester University.

Project Director

Jens Petter Hamang, IHS CERA Director, Cost and Procurement Group, is responsible for the IHS CERA Market Survey System (MSS). Mr. Hamang is an expert in strategic sourcing and market intelligence for the upstream oil and gas industry and has 10 years of consulting experience. He has been developing and managing MSS since 2006, which has become the industry standard for supplier market intelligence for oil and gas companies’ contracts and procurement organizations. Prior to joining IHS Mr. Hamang most recently worked as a management consultant at Capgemini Consulting for the oil and gas industry. He is a graduate of the Norwegian Military Academy and holds a master’s degree from the BI Norwegian School of Management.

Project Team

Pritesh Patel, IHS CERA Associate Director, Capital Costs Analysis Forum, is an expert in oil and gas conceptual development studies both onshore and offshore. He has over nine years of domestic and international expertise in project management and strategic consulting. Mr. Patel has investigated the full range of offshore oilfield development scenarios, including subsea systems, floating production systems, and boosting technologies. He has also been involved in business strategy development and industry forecasting, enabling him to develop a broad interest and understanding of worldwide industry issues and trends. As an Associate Director on CERA Global Oil team, he is responsible for contributing research to the Capital Costs Analysis Forum. He holds a master’s degree in chemical engineering from Loughborough University, United Kingdom.

Bjorn Hem is IHS CERA Principal Researcher with the E&P Cost and Technology Group. Mr. Hem was part of ODS-Petrodata which was recently acquired by IHS. With the IHS CERA Market Survey System (MSS), he is responsible for the Industry Trends Market Analysis, which summarizes the outlook across all MSS market segments, and analyses the emerging trends across the oil and gas industry. His expertise also includes liquefied natural gas liquefaction plants; inspection, maintenance, and repair services; onshore production facilities; refining; and offshore helicopters. Prior to joining IHS Mr. Hem was a consultant for the downstream oil and gas industry with PFC Energy in Paris. He also has previous experience in management consulting.  Mr. Hem holds a bachelor’s degree (hons.) from Heriot-Watt University, Edinburgh, and an MSc from SKEMA Business School, France.

Oliver Stephenson, IHS CERA Senior Principal Researcher, E&P Cost and Technology Group, specializes in the upstream oilfield services and products. Mr. Stephenson was part of ODS-Petrodata, which was recently acquired by IHS. With ODS-Petrodata he established the Singapore office of analysts covering the Asia Pacific markets. Previously as a market analyst in the company’s Aberdeen, Scotland, office, he was responsible for researching and analyzing the oilfield services and products markets, with a particular focus on line pipe and oil country tubular goods. Prior to ODS-Petrodata Mr. Stephenson was an Equity Analyst with HSBC covering upstream oil and gas companies in Russia and Eastern Europe. He holds a BA from the University of Bath and an MSc from the London School of Economics.

Frank Larsen is IHS CERA Senior Manager, Market Survey System, with the E&P Cost and Technology Group and manages the Market Intelligence team in the Cost and Procurement Group. Mr. Larsen was part of ODS-Petrodata, which was acquired by IHS. Prior to joining ODS-Petrodata/IHS CERA, he held various posts with Aker Solutions in the subsea division for over a decade, including as Engineering Manager, System Engineer, and Senior Manager.  Mr. Larsen holds engineering degrees from Oslo’s College of Engineering and University of Newcastle upon Tyne and an MBA from SDA Bocconi.