CALGARY (Bloomberg) -- Four years ago, Canada’s government tried to keep state-owned companies out of Alberta’s oil sands. Now, they may be around for a while.
ConocoPhillips, Marathon Oil Corp. and Royal Dutch Shell Plc decided this month to sell most of their oil sands to Cenovus Energy Inc. and Canadian Natural Resources Ltd. That leaves firms such as China’s Cnooc Ltd. among the last foreigners holding major stakes in the bitumen-soaked soil of northern Alberta.
Chinese firms including Cnooc, PetroChina Co. Ltd. and China National Petroleum Corp. are now the second-largest foreign investors in the oil sands after U.S. companies. They may be willing to sell, but are hindered because their operations aren’t viewed as being as valuable as those sold recently, and the opportunity to sell may be closing as the pool of potential buyers shrinks, according to Mark Oberstoetter, lead analyst for upstream research at Wood Mackenzie Ltd. in Calgary.
“We don’t think they will exit for a fire sale, and we are struggling to see who would step up and buy them,” said Oberstoetter.
With the recent sales, Cnooc will become the fourth biggest producer by capacity in the oil sands behind Exxon Mobil Corp, Total SA and Devon Energy Corp. Paris-based Total, for one, has said it is seeking to sell more of its oil sands assets after selling 10% stake in the Fort Hills oil sands mine in 2015 to Suncor Energy Inc.
Something interesting to share?
Join NrgEdge and create your own NrgBuzz today
Tyre market in Bangladesh is forecasted to grow at over 9% until 2020 on the back of growth in automobile sales, advancements in public infrastructure, and development-seeking government policies.
The government has emphasized on the road infrastructure of the country, which has been instrumental in driving vehicle sales in the country.
The tyre market reached Tk 4,750 crore last year, up from about Tk 4,000 crore in 2017, according to market insiders.
The commercial vehicle tyre segment dominates this industry with around 80% of the market share. At least 1.5 lakh pieces of tyres in the segment were sold in 2018.
In the commercial vehicle tyre segment, the MRF's market share is 30%. Apollo controls 5% of the segment, Birla 10%, CEAT 3%, and Hankook 1%. The rest 51% is controlled by non-branded Chinese tyres.
However, Bangladesh mostly lacks in tyre manufacturing setups, which leads to tyre imports from other countries as the only feasible option to meet the demand. The company largely imports tyre from China, India, Indonesia, Thailand and Japan.
Automobile and tyre sales in Bangladesh are expected to grow with the rising in purchasing power of people as well as growing investments and joint ventures of foreign market players. The country might become the exporting destination for global tyre manufacturers.
Several global tyre giants have also expressed interest in making significant investments by setting up their manufacturing units in the country.
This reflects an opportunity for local companies to set up an indigenous manufacturing base in Bangladesh and also enables foreign players to set up their localized production facilities to capture a significant market.
It can be said that, the rise in automobile sales, improvement in public infrastructure, and growth in purchasing power to drive the tyre market over the next five years.
Headline crude prices for the week beginning 14 January 2019 – Brent: US$61/b; WTI: US$51/b
Headlines of the week
GEO ExPro Vol. 15, No. 6 was published on 10th December 2018 bringing light to the latest science and technology activity in the global geoscience community within the oil, gas and energy sector.
This issue focusses on frontier exploration, downhole acquisition tools and how we can collaboratively increase the efficiency of the exploration and production of oil, gas and energy resources. With a geographical focus on the Gulf of Mexico, this issue provides a lesson on the carbonate geology of the Florida Keys and details coverage of newly improved tectonic restorations of the US and Mexican conjugate margins which have enabled enhanced mega-regional hydrocarbon play and reservoir fairway maps of the region.
You can download the PDF of GEO ExPro magazine for FREE and sign up to GEO ExPro’s weekly updates and online exclusives to receive the latest articles direct to your inbox.
To access the latest issue, please visit: https://www.geoexpro.com/magazine/vol-15-no-6