Far East to
Wild West:
demand and supply
in the new gas
landscape
August 2017
About ACCA
ACCA (the Association of Chartered Certified Accountants) is the global
body for professional accountants, offering business-relevant, first-choice
qualifications to people of application, ability and ambition around the world
who seek a rewarding career in accountancy, finance and management.
ACCA supports its 198,000 members and 486,000 students in 180 countries, helping them
to develop successful careers in accounting and business, with the skills required by employers.
ACCA works through a network of 101 offices and centres and more than 7,291 Approved
Employers worldwide, who provide high standards of employee learning and development.
Through its public interest remit, ACCA promotes appropriate regulation of accounting and
conducts relevant research to ensure accountancy continues to grow in reputation and influence.
Founded in 1904, ACCA has consistently held unique core values: opportunity, diversity,
innovation, integrity and accountability. It believes that accountants bring value to economies
in all stages of development and seek to develop capacity in the profession and encourage
the adoption of global standards. ACCA’s core values are aligned to the needs of employers
in all sectors and it ensures that through its range of qualifications, it prepares accountants
for business. ACCA seeks to open up the profession to people of all backgrounds and remove
artificial barriers, innovating its qualifications and delivery to meet the diverse needs of trainee
professionals and their employers.
More information is here: accaglobal
About this report
This paper explores trends
in the gas sector and their
impact on professional
accountants.
淘宝店铺
“Vivian研报”
收集整理
获取最新报告及后续更新服务请淘宝搜索“Vivian研报”
Contents
Executive summary 4
Introduction 5
1. The impact of supply 6
2. Changing roles for finance professionals 9
3. Outlook for LNG 11
Appendix 12
References 13
When the oil price reached its
peak, many gas company CFOs
had the luxury of considering
long-term profitability and
financing ambitious projects.
Today, the low and fluctuating
price of oil and increasing
supply mean that finance
teams have to think differently.
This report investigates what this means.
How have low oil prices and the US’s rise
to prominence as a gasproducer
affected global gas supply and demand
Should we expect to see changes in the
way liquefied natural gas (LNG) is bought
and sold What will this mean for finance
professionals working in the gas sector
In addition to interviews with industry
experts, this paper also makes reference
to views gathered through a survey to
seek the inputs of ACCA members
around the world.
Gas is attractive to buyers, and this
looks set to continue. The price has
dropped alongside the oil price, and
supply is increasing.
The US could fundamentally reshape the
gas sector: 79% of survey respondents
said that the rise of the US as a gas
producer will have a serious impact on
global gas markets – forcing prices down
not only at home but also in Asia and
even Europe. But the picture is less clear
than it might seem: with pricing pressures
making new drilling a risky undertaking,
growth is slowing.
For sellers, gas is a long-term option.
More complex than oil, wells cannot be
as easily turned on or off according to the
current price. Also, infrastructure has to
be built to store and transport gas,
whereas oil can go straight into barrels.
Furthermore, gas prices vary more by
region compared to oil.
It is therefore a less attractive short-term
investment, and the low prices are causing
a move away from investing in unproven
assets and towards those that can provide
a more reliable return. Companies are still
looking at replacing reserves, but mostly
seek quality assets that will become
commercially viable relatively quickly.
At the same time, the relationship
between buyers and sellers in LNG
markets is evolving, with an end to
long-term supply contracts no longer
being an unrealistic prospect for buyers
as the spot market opens up.
Uncertain times mean that companies are
placing a stronger emphasis on improving
cash flow. ‘Everything in the gas sector
has switched to a short-term perspective’,
says Adi Karev, Global Oil & Gas Leader
at EY. ‘Risk appetite has vanished, and
this changes what finance teams have to
focus on. At the moment, that means
focusing on dividends for shareholders’.
There is also greater financial scrutiny of
upstream projects and gas supply
contracts, spot markets are expected to
grow as supply increases, and offtake
contracts are evolving. And with plenty of
room still for consolidation, mergers and
acquisitions (M&A) activity – while less
frantic than expected by many industry
experts – is set to increase.
With finance teams having to consider
these factors, their jobs are becoming
more complex and more pressured;
companies, meanwhile, will have to be
flexible to cope with pricing pressures.Executive summary
。。。以上简介无排版格式，详细内容请下载查看