Authors

Sarbjit Nahal and Others

Research organisation

Bank of America Merrill Lynch

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Oil & Gas: Better Safe than Sorry

Report Date

December 2010

Release Date

March 2011

Document summary

The Gulf of Mexico oil spill has put safety firmly on investors’, regulators’ and stakeholders’ agendas. Offshore and deepwater are key to production growth after 2015, but the industry is facing a major challenge in terms of ageing global fleets and technological obsolescence from tougher conditions and tighter global HSE standards. BAML considers the move to stricter safety standards is catalysing the offshore rig, equipment and drilling cycle. The spill is framing the policy debate for the energy mix with cleaner and safer forms of energy among possible winners and “Big Oil” and consumers possible losers.