Global Offshore Prospects - Douglas-Westwood

Natural gasscubic metretrillion5432Offshore DeepOffshore ShallowOnshore3.02.52.01.5Btu ratio Oil‐to‐GasAvg. ratio Oct. 2009 ‐ 2015Avg. ratio 1998 ‐ 200511.000.519301934193819421946195019541958196219661970197419781982198619901994199820022006201020142018The Growing Importance of Offshore GasSource: Energyfiles199819992000200120022003200420052006200720082009201020112012201320142015Oil-to-Gas Price Ratio on a BTU Parity BasisSource: EIA• Strong long-term demand growth – a ‘clean’ fuel for power generation• Decommissioning / difficulty in permitting of coal power stations means that toplug the gap another ‘dash for gas’ likely—UK in particular• Major investments underway e.g. LNG, gas shales• Renaissance of natural gas in the US• Prospective ratio of oil to gas prices suggests natural gas as vehicle fuel14