This article features commentary from Martiniano Lopez, Energy & Natural Resources Sector Leader at KPMG in Brazil.
This episode of Political Sidetrack, which explores politics from an energy perspective, examines U.S. trade policy proposals and the possible benefits and detriments to the global oil and gas industry, and features Regina Mayor, principal, global sector head and U.S. national sector leader of energy and natural resources for KPMG in the U.S.
This article featuring expert commentary by Ruben Cruz, Head of Energy & Natural Resources, KPMG in Mexico appears here with publisher's permission.
Mexican companies as TenarisTamsa, La Costeña and SuKarne explore the Arab market, comprising 388.3 million.
KPMG Peru says that the country most affected businesses come from retail sectors, mining and financial companies.
The main changes expected by the industry with alternating government has not yet come and expectations remain high. While there is talk of the end of one operation in the pre-salt in tax reform and revision of local content, another related issue is beginning to be guided the redesign of business strategies in the sector: the reduction of Petrobras size.
After living the so-called "golden age" with the expectation around the pre-salt reservoirs, the Brazilian oil and gas industry goes through a time of reconfiguration. Currently, there is an ongoing series of actions to try to speed up the resumption of investment in the sector, which has been one of the most promising of the country, which represented approximately 13% of GDP, and retrieve a segment that was also affected hard by the political and economic crisis and the Lava-Jato Operation.
The bet of KPMG is that foreign companies such as Asian and Canadians appear more strongly at the event, with the real devaluation of aid and with a moment of weakness or less aggressiveness of the Brazilian transmission investors.
According to an analysis by Alberto Mondelli, leader partner in human capital consulting and organizational change for Latin America at KPMG in Mexico, the most common decision of firms in the Oil&Gas industry is to cut staff, but this can only solve a short-term problem.
Given the drop in oil prices and the slow recovery of the global economy in Mexico some tax changes for 2016 aimed at promoting savings and investment were made, representing a business opportunity for the private sector.
Bill Thomas welcomes the change of government that occurred in the country. From his place as CEO for the Americas of the consulting and auditing firm KPMG, the executive believes that begins a very good time. He is convinced, he says, that will generate opportunities for foreign companies to invest in Argentina.
The special report "Oil and Gas. Balance of the 2005-2015 decade, prospects and challenges" by KPMG explains what has been the behavior and overall performance of the oil and gas industry over the past ten years as well as their immediate prospects . Among the main concerns of the sector include the required increase in production, sources of financing, investment, prices and development of unconventional resources.
On Tuesday (16), the governments of Saudi Arabia, Russia and Venezuela decided to freeze oil production levels in January. The announcement was made by Mohammed Saleh al Sa'adah, Qatari Minister of Industry and Energy and rotating president of the Organization of Petroleum Exporting Countries (OPEC). The move aims to stabilize the oil market that is down to the lowest level in 12 years, due to the oversupply in the market. But how this measure can influence the Brazilian market?
The value of oil has decreased by almost a quarter in the few days since the turn of the year, but the barrel did not fell alone. The ten largest commodity producers in the world with shares listed on the stock exchange have been suffering successive drops in the prices of their securities in 2016, accumulating, together, a devaluation of approximately R$ 463 billion (US$ 115 billion) in market value.
If the front-runners in FLNG can meet a number of key technical, commercial and financial challenges, we predict it will emerge as a key pillar of a 2020’s LNG business that looks quite different from that of today.
Chilean actions could be highlighted next year, despite a sombre situation in Latin America, thanks to a reduction in the perception of political risk and historically low assessments that provide opportunities for selective acquisitions.
There are still many uncertainties surrounding the future of energy with regards to what will be the most used energy source. In the search for the best solutions for the environment, renewable energy sources, such as solar and wind power, are emerging in the race, but Liquefied Natural Gas (LNG) is also pointed out as one of the answers. KPMG is attentive to this market and developed the study "Unknown waters: demand for LNG in a processing industry".
The expectations of an improvement in economic activity that triggered the successful election of Mauricio Macri as president, were not only exceeded by the market, which last week reported strong highs in the Merval index: it also changed for consumers and companies, which predict an inflation rate close to 20% in 2016 and growth of investment of around 25% in the first year of the PRO government.
Today, the oil and gas industry in Brazil is going through a phase of restructuring and critical changes. In terms of the external situation, a significant drop in the price of the Brent barrel affected the profitability of various exploration and production companies and, consequently, led to them having to postpone or optimize new investments due to lower cash flow generation. Here in Brazil, however, the situation has not been very optimistic in recent months and some factors have contributed to this.
The country should achieve a GDP, up from the current 16% to 25% that would represent a total investment, between the public and private sector, of US$ 125 billion annually. The need to improve infrastructure in sectors such as energy, transport, ports, logistics and housing, would have a positive impact on economic growth.
The economic crisis that Brazil is currently going through, combined with the instability of the mining industry and the devaluation of the Brazilian Real against the dollar has increasingly attracted more foreigners to exploit minerals in the country. They acquired more national companies in the sector in 2015, according to research involving 43 sectors of the Brazilian economy, carried out by KPMG.
According to a study carried out by KPMG, the number of mergers and acquisitions of energy companies in Brazil, from July to September of that year, had a drop of 67% in comparison to the same period of 2014.
Concessions of important hydroelectric plants should ensure a good part of the 17 billion reais that the federal government intends to collect with the recovery of the stock bonus in the auction scheduled for November 6, with the action attracting large national and international groups to billionaire assets, according to experts interviewed by Reuters.
Auditing giant KPMG has warned the Federal Government of the dangers of not investing in the upstream oil sector and the threat of shale oil to the country’s revenue drive.
Cheap, Clean And Controversial - Shale gas has the potential to turn the world's energy industry on its head.