Cash rich, prospect hungry oil companies face challenging future

US petroleum research company John S. Herold and UK-based Harrison Lovegrove, a global oil and gas corporate advisory firm, have collaborated again to create the 40th annual Global Upstream Performance Review (GUPR),* which focuses on the upstream investment performance of 228 energy companies. We reproduce here some salient points from the report’s abridged version. (By coincidence, both companies were subject of acquisitions last month, see news for details). Global economic expansion continued to boost petroleum demand while the world’s oil production capacity was constrained, partly by political factors, and its refining capacity was curtailed by maintenance needs or operational issues. The resulting higher prices fuelled a 16% jump in the average price per barrel of oil equivalent (boe) realized by the 228 companies in the Global Upstream Performance Review universe.