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Released November 09, 2017 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--ConocoPhillips (NYSE:COP) (Houston, Texas) is eager to take advantage of the recent recovery in oil prices, but is cautiously emphasizing profitability and efficiency over aggressive growth. Its top spots for development are the Eagle Ford and Permian shales of Texas, which are expected to fuel 5% growth each year at the company for the rest of the decade. Industrial Info is tracking almost $54 billion in active projects involving ConocoPhillips, including $18.3 billion worth nearing or under construction.
The oil-and-gas giant plans to invest $5.5 billion in capital projects each year through 2020, as long as West Texas Intermediate (WTI) prices stay at more than $50 per barrel. ConocoPhillips, like the other production majors, learned some tough lessons during the commodity price downturn, the biggest being that overinvesting in a market upswing can lead to painful decisions when the cycle turns in the other direction. But executives are encouraged by technological and process developments that allow the company to produce more at a lower cost.
The Eagle Ford Shale is expected to supply 650 million standard cubic feet per day of natural gas to ConocoPhillips' Freeport LNG Liquefaction and Export Plant in Quintana, Texas. The facility has three production trains under construction, each of which will produce 4.6 million tons per year of liquefied natural gas (LNG). Tolling agreements have been signed for with Osaka Gas and Chubu Electric for the $5.5 billion first train; BP plc (NYSE:BP) (London, England) for the $5.5 billion second train; and Toshiba Corporation (Tokyo, Japan) and SK E&S (Seoul, South Korea) for the $4.5 billion third train.
The Freeport LNG project got a boost during the summer when the U.S. Court of Appeals for the District of Columbia threw out a challenge from the Sierra Club to halt exports from the facility. The environmental group argued that the U.S. Department of Energy did not properly assess potential greenhouse gas emissions from gas production related to the project, but the court found its arguments unconvincing. Earlier this month, the same court struck down similar challenges from the Sierra Club for three other LNG export facilities. For more information, see Industrial Info's project reports for Train 1, Train 2 and Train 3.
ConocoPhillips also is at work on projects in Australia, both offshore and onshore. A subsidiary is expected to begin construction next year on a $306.1 million natural gas subsea development in Australia's Timor Sea. The project involves drilling three wells to access stranded gas, which will be processed and sent to the company's Darwin LNG Plant for liquefaction and export.
Australia Pacific LNG Pty Limited (APLNG), a joint venture among ConocoPhillips (37.5%), Origin Energy Limited (37.5%) and China Petroleum & Chemical Corporation (Sinopec) (25%), is at work on a $300 million collaborative well delivery project near Miles, Queensland. The venture plans to drill 226 wells for coal seam gas (also called coal bed methane) in the Surat Basin. The gas will be processed by APLNG and sent to an Australia Pacific LNG (APLNG) Production Plant near Gladstone, Queensland. For more information, see Industrial Info's project reports on the Timor Sea and APLNG projects.
Chief Executive Officer Ryan Lance told investors during a presentation in New York that the leaner, steadier approach should allow ConocoPhillips to send more than 30% of cash flow back to shareholders in the form of dividends and share buybacks by 2020. He called shareholder returns "the ultimate measure of value creation in our business."
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
The oil-and-gas giant plans to invest $5.5 billion in capital projects each year through 2020, as long as West Texas Intermediate (WTI) prices stay at more than $50 per barrel. ConocoPhillips, like the other production majors, learned some tough lessons during the commodity price downturn, the biggest being that overinvesting in a market upswing can lead to painful decisions when the cycle turns in the other direction. But executives are encouraged by technological and process developments that allow the company to produce more at a lower cost.
The Eagle Ford Shale is expected to supply 650 million standard cubic feet per day of natural gas to ConocoPhillips' Freeport LNG Liquefaction and Export Plant in Quintana, Texas. The facility has three production trains under construction, each of which will produce 4.6 million tons per year of liquefied natural gas (LNG). Tolling agreements have been signed for with Osaka Gas and Chubu Electric for the $5.5 billion first train; BP plc (NYSE:BP) (London, England) for the $5.5 billion second train; and Toshiba Corporation (Tokyo, Japan) and SK E&S (Seoul, South Korea) for the $4.5 billion third train.
The Freeport LNG project got a boost during the summer when the U.S. Court of Appeals for the District of Columbia threw out a challenge from the Sierra Club to halt exports from the facility. The environmental group argued that the U.S. Department of Energy did not properly assess potential greenhouse gas emissions from gas production related to the project, but the court found its arguments unconvincing. Earlier this month, the same court struck down similar challenges from the Sierra Club for three other LNG export facilities. For more information, see Industrial Info's project reports for Train 1, Train 2 and Train 3.
ConocoPhillips also is at work on projects in Australia, both offshore and onshore. A subsidiary is expected to begin construction next year on a $306.1 million natural gas subsea development in Australia's Timor Sea. The project involves drilling three wells to access stranded gas, which will be processed and sent to the company's Darwin LNG Plant for liquefaction and export.
Australia Pacific LNG Pty Limited (APLNG), a joint venture among ConocoPhillips (37.5%), Origin Energy Limited (37.5%) and China Petroleum & Chemical Corporation (Sinopec) (25%), is at work on a $300 million collaborative well delivery project near Miles, Queensland. The venture plans to drill 226 wells for coal seam gas (also called coal bed methane) in the Surat Basin. The gas will be processed by APLNG and sent to an Australia Pacific LNG (APLNG) Production Plant near Gladstone, Queensland. For more information, see Industrial Info's project reports on the Timor Sea and APLNG projects.
Chief Executive Officer Ryan Lance told investors during a presentation in New York that the leaner, steadier approach should allow ConocoPhillips to send more than 30% of cash flow back to shareholders in the form of dividends and share buybacks by 2020. He called shareholder returns "the ultimate measure of value creation in our business."
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
