International oil prices fell more than expected, the oil companies "lean production", dropped sharply geophysical prospecting, drilling exploration, oil felt chill thick clothing enterprises.

International oil prices fell more than expected, causing the oil and gas and oil industry chain reaction "cool", the entire oil and gas industry chain are shivering. According to the relevant institutions, expects global oil and gas exploration and production capital spending this year to $657 billion, down 16% year on year, cicc research reports, from the point of the Chinese market, petrochina, sinopec exploration and development investment slowdown trend since 2013.

Oil companies "lean production", geophysical prospecting, drilling exploration greatly reduced, which makes professional high lard clothing enterprises feel the chill of deep. Oil clothing enterprises in China, high degree of marketization of cosl (stock).

Oil prices decreased magnificently over the period

Oil and oil companies have been on the same page, a drop in oil prices, oil companies to win "grease", can only be cut authors, serving as a direct result of oil companies work. Therefore, oil companies have to reduce technology, personnel, and capital investment, oil companies are difficult to yield.

This year, the oil companies further contraction upstream exploration and mining investment, and further to divest non-core assets. Edison investment research firm, according to a report in response to the slump in oil prices, this year's big oil companies to cut capital spending by an average of 10% ~ 15%, and at the same time, large-scale restructuring and renegotiate the service contract.

Earlier this year, total company announced a 10% reduction in investment, and accelerate the asset transfer. Specifically, compared with the investment of 26 billion dollars last year, $2 billion to $3 billion this year will reduce the investment, reduce investment mainly relates to the north sea, Canada, and in the west African region. Bp also said that this year's annual budget cut to $20 billion, compared with the original plan of $24 billion by about 20%.

Similarly, in addition to the international oil companies, national oil companies are slashing upstream exploration and capital spending. Oil last year in the annual report disclosure, its capital expenditure of 291.729 billion yuan, down 8.5% compared with 318.696 billion yuan in 2013. The spending is expected to 266 billion yuan this year, including oil and gas exploration and production sector is expected to 200.2 billion yuan, far less than 226.376 billion yuan and 221.479 billion yuan in 2013 and last year's.

China's oil enterprises also tough times; in oil as the main customer of cosl directly under pressure, work this year. Cosl is lead near cnooc clothing market in China, the oil and gas market adverse environmental impact, as of the first quarter, its operating income fell 451.4 million yuan, investment income fell 3.17 million yuan, operating profit dropped sharply by 30.9% to 1.1655 billion yuan.

In the face of continued low oil prices, cosl, said in a prudent attitude to capital investment. In drilling plate, will consider to build a clear target market, follow-up is suitable for the specific waters and unique special form in the market; The international market this year if you have new demand, the main consideration is given priority to with the lease.

Platform utilization rate declined

Low oil prices to rise, the petroleum enterprise investment decision changes bring some project delay or suspended, and many Marine engineering project, a lot of drilling contract is terminated in advance. The message pointed out that cosco will abandon the $600 million in unconventional OTT treasure semi-submersible drilling production storage platform construction project; The Russian oil company Rosneft will delay the offshore development projects in the arctic kara sea; Oil drilling in the arctic, at the end of May 7 high-profile cold water drilling project has 5 has been temporarily suspended.

Offshore oil service industry equipment supply glut began to deteriorate, drilling, geophysical prospecting and other large equipment signing rate and service prices in different degree of decline, plate logging technology, directional well, the cementing services also face much less, the test of price cuts. According to overseas data, estimated this year overseas oilfield engineering technical service market size for $371.7 billion to $402.6 billion, or 8% ~ 15%. The Nordic Banks, according to a recent ultra deepwater floating drilling platform, rents fell more than 50%, fell to about $275000; Jack-up drilling platform, the rent also fell 40%. In mid 2017, drilling platform, the rent will fail.

Lard clothing enterprise the international oil market; four schlumberger, halliburton, baker hughes and weed bulk, layoffs, China's oil market also solidly. Affected by oil prices fell sharply, cosl exploration workload drops rapidly in domestic and foreign market, geophysical exploration work is short for collecting and processing business, 3 RIGS appear in the international market in the second half of the end of the contract or cancel the phenomenon of ahead of time. A few days ago, cosl cnooc reached an agreement with main customers, the service of cnooc's drilling platform rate by 20% ~ 20%.

On June 25, COSL announcement, due to production decline, the Norwegian oil countries will cancel the lease COSL semi-submersible drilling platform COSL Pioneer of contract. Data show that COSL Pioneer is COSL's three services in one of Norway's national oil semi-submersible drilling platform, idle since last October, COSL has been charge 50% of the idle period. Originally scheduled for August COSL Pioneer back up and running, but due to oil prices lead to capital spending cuts, the Norwegian oil countries decided to terminate the contract in advance (earlier than the original expires next August 13 months), and agreed to a certain proportion of daily rent to COSL to pay a fine. In response, cosl to cut 229 jobs in the north sea region.

To this, the bank of China securities forecast, years COSL Pioneer will continue to be idle, the utilization rate of 50% in the next year or two, COSL for drilling platform in overseas is hard to get a new contract. At the same time, due to weak market demand, the traditional offshore drilling in other areas of the service provider is to look for business opportunities in Asia, this is the challenge for cosl.

Cosl one quarterly data show that affected by oil exploration and development investment strength decrease, large equipment utilization rate is not full, rig utilization and daily rates are falling. Homework for 3358 days as of the first quarter, cosl drilling fleet, year-on-year increase of 297 days, 9.7% increase of jack-up drilling platform work 2565 days, up 17.3%; Semi-submersible drilling platform work 793 days, down 9.3% compared to the drilling platform of the available day fell by 8.3% to 90.3%, utilization rate of jack-up drilling platform and semi-submersible drilling platform available day utilization rate were 90.5% and 89.75 respectively, reduced by 7.5% and 10.3% respectively compared to the same calendar day utilization rate fell by 0.6% to 86.8%. Among them, the jack-up drilling platform has increased; Semi-submersible drilling platform fell by 9% to 88.1%. So far, 43 cosl drilling platform, there are still some didn't get the year contract.

Facing the industry reshuffle

Cosl bumps are not alone, because of China's oil and gas resources is not yet open, more than 80% of the oil and gas production control in the hands of state-owned enterprises. Owns more than half of the domestic oil drill, nearly 70% of the market and staff, and petrochina look, visible industry. However, petrochina's oil clothing enterprises is not listed, the specific performance is not clear, but from the point of a quarterly, petrochina investment income greatly reduced 40%, operating profit, net profit plunged more than 70%, China's oil market cautious.

Oil, a clothing industry who declined to be named to the shipping trade gazette reporter, said in a low cycle, oil clothing enterprises can only through the authors efficiency to reduce the adverse factors, waiting for the industry. However, China's oil enterprises basically is a subsidiary of oil enterprises, creativity, competitiveness, and customer's single oil has been serving enterprises shortcomings; International large oil service companies and oil companies have no capital association, the stronger market competition consciousness, professional techniques, can get out the contract smoothly.

The consultancy, thinks, the current oil price fell, the clothing enterprises to avoid oil production equipment idle and personnel slowdown, must lower the price of technical service 15% ~ 20%. The clothing enterprises in China international oil executives have pointed out that the industry of winter, oil and oil companies should be "winter" hand in hand, through the upgrade technology and management mode, make the exploration and exploitation of more than 3% lower total cost. Cosl chairman liu in an interview with the media also said that cosl to populace with the customer, make some concession in price, also by some mechanisms to implement "risk-sharing, benefit sharing". In addition to lower prices, some Chinese private oil clothing enterprise also began to enter the upstream oil and gas exploration and development fields, to the oil enterprise transformation.

In addition, this person also noted that as the organization of petroleum exporting countries say, not because the ending of the era of "stone ran out of the stone", Opec organizations rely on resources such as monopoly, to delay new energy research and development, interest game, oil prices will recover smoothly, it's only a matter of time. Offshore market downturn, although by drag on, oil prices, but oil and gas development will not stop, the demand of oil and gas services will not fall. This kind of environment, drilling market competition environment will be big change, oil market will face shuffle.

Nordic Banks, analysts said the drilling platform of scrap is the only way to save the sea a weak labor market. Nordic Banks, according to data from the next two years, there will be 109 floating drilling platform and sold 102 jack-up drilling platform and dismantling, does not include the 38 cities has been scrapped, that is to say, equivalent to about one-third of the rig drilling fleet in the world will be scrapped, so as to ease market oversupply problem. But over the next few years, is about to deliver a large number of drilling platform and market oversupply problem will get worse, including 85 new floating drilling platform. Global drilling market reshuffle.