Global E&P mid-year spending outlook: Collapse underway

Global E&P mid-year spending outlook: Collapse underway
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Global E&P mid-year spending outlook: Collapse underway

So far, 2020 is on track to be the second-worst year in the spending survey’s 35+-year history, exceeded only by the 32% decline of 2016.

Overproduction by Saudi Arabia and Russia in March and April, and the accompanying oil price crash before the OPEC+ deal was reached, have taken their toll on the 2020 capital spending outlook. Here, at Evercore ISI, we forecast global E&P expenditures will decline 27% in 2020, a 3,000-bps (basis point) turnaround from the 2% increase in spending anticipated in our December survey.

This ends three straight years of modest growth since 2016, with the net cumulative gain at 16% off the 2016 trough but still 39% below the 2014 peak. Earlier expectations for a fourth straight year of modest improvements in 2020 have reversed course. We now forecast global E&P spending to establish new lows that are 16% below the 2016 trough and 55% below the 2017 peak. Global E&P spending is now back to 2005’s level.Table 1. Global E&P capital spending by company type and region, mid-year vs. initial outlook, $billions.

The double black swan of a global pandemic and a market share war is bringing additional casualties to the energy industry. International spending shifted from an anticipated third consecutive year of positive growth to a 22% contraction, with all regions in decline, Table 1. Meanwhile the pace of decline in North America (NAM) has accelerated to 42% from an anticipated 6%, Table 1. The U.S. accounts for 80% of NAM activity, as Canada is contracting for the sixth time in 10 years.

OVERVIEW

In fact, 2020 is on track to be the second-worst year for NAM in our survey’s 35+ year history. Second only to the 53.5% collapse in NAM spending experienced during 2016, 2020 is likely to be even worse than the 39% and 34% declines posted in 1986 and 2015, respectively. Spending is contracting for the fourth time in six years, and three of these years rank in the top four of 12 down years registered in our survey’s history.

The devastation brought forth to the U.S. and Canadian industry cannot be overstated, as three years of painfully slow single-digit growth from 2017-2019 have been eliminated. NAM E&P capex has now fallen 5% below the 2016 trough and is 71% below the 2014 peak, reverting back to 2003/2004 levels before the U.S. shale gas revolution began. Overall, NAM capex has contracted during 12 of the last 36 years by an average 24%.

Double-digit declines in all international regions. Within the international markets, we initially expected E&P capex to increase 5% for 2020, but now we expect it to decline 22%, with all international regions contracting by double digits. This is only the second time in modern history that all regions are in decline (2020 and 2015), and the only time that all regions are contracting by double digits. Africa’s capex held up better than most in 2015, due to ongoing development projects, but the opposite is occurring now. Large developments have wound down, and discretionary work is easily deferred.

We expect Africa to lead international capex declines at 43%, followed by Russia/FSU/Eastern Europe and Western Europe tied for second place with near-30% contractions in spending. Capex is also falling significantly in Latin America, down 24%, while spending in Asia and the Middle East is experiencing relatively modest capex cuts in the mid-teens. By operator types, independents are cutting swiftly, down near 25%, while majors are 17% less.

Like NAM, 2020 is on track to be the second-worst year for international E&P spending in our survey’s 35+-year history and second only to the 25% decline in 2016. International capex has contracted in 10 of the last 36 years by an average 2%, with four contractions in the past six years ranking among the worse downturns. International E&P capex has fallen 13% below the 2017 trough and is 48% below the 2014 peak, reverting back to 2006/2007 levels.

Offshore rig count crashed through our bear estimates. The near-30% swing in international capex spending plans is evident offshore, where both the floating and shallow-water rig counts have fallen from their March peaks. Offshore spending tends to be stickier, given the complexity of these projects relative to land-based activity, and we had expected activity to hold up better. However, with COVID-19 travel restrictions further raising offshore costs, operators were quick to terminate contracts, defer rig tenders and relinquish exploration programs.

Progress on recently approved development projects slowed, as rigs were put on standby and operators sought capex cuts and pricing concessions across service and product lines. As a result, both the floater and jackup rig counts fell quickly over the past few months, and rig contractors have re-accelerated attrition.

NORTH AMERICA: UNITED STATES

The first half of 2020 was quite the roller coaster for NAM activity and capex spending. During the first two months of 2020, OFS companies experienced improving utilization levels, as E&P customer budgets reset, and rigs and completion crews were re-activated. The U.S. land rig count was relatively resilient in the first quarter, declining 4.2% sequentially. This compared to declines during the three previous quarters of -11%, -7.5%, and -5.5%, respectively.Fig. 1. U.S. capex in 2020 will fall below 2016 levels.

Then March came, and the decline in oil prices and COVID-19 logistical challenges drove completion activity to a halt, while the U.S. land rig count pulled back sharply. We are forecasting capex in the U.S. to decline 43%, to $58 billion in 2020, Fig. 1. This is lower than 2016 U.S. capex spending of $60 billion. We estimate the 2020 U.S. land rig count will decrease 58%, year-over-year, and average 389 units for the year. The second-quarter U.S. land rig count has declined 51%, but recently the declines have started to shallow out. The U.S. land rig count exited 2019 at 782 rigs, and the industry has since dropped 528 rigs to reach 254 in the latest week.

OFS companies have poor visibility for the second half of the year. We continue to believe that the recovery will be “W”-shaped. This means that after activity levels bottom out in the second quarter, there will then be a small recovery in the third quarter before budgets are exhausted and activity levels decline again into year-end. There remain too many assets, companies, management teams and debt. This downturn will accelerate the restructuring and consolidation cycle that is required.

Bottoming-out process. Oilfield service companies have dusted off their downturn playbooks, which say that they should aggressively cut costs (both variable and structural costs); cut their own capex spending levels; lay off and furlough labor; cut salaries and compensation; and close underutilized facilities. We wonder whether these steps will be enough, given that this is truly an unprecedented downturn event (which it appears to be).

However, there are some positive signs emerging. Record global inventories are likely approaching a peak, and stronger demand and reductions in supply have flattened the curve for inventory levels. Weekly rig count declines are starting to shallow out from where they started at the beginning of the downturn. The path forward will still be challenging, but a little stability off the bottom will help.

Updated U.S. land rig forecast. We are updating our U.S. land rig count forecast to reflect our revised U.S. capex spending survey and second-quarter rig count declines, and to roll out our 2022 forecast. We now expect the U.S. land rig count to decline 58% in 2020, compared to our previous forecast of -56%. This was driven by the rig count declines in the second quarter that were steeper than we previously expected. We are also lowering our 2021 rig count expectations, now expecting it to decline 38%, compared to our previous 29% drop.

Future of U.S. land. The shorter cycles of unconventional development, combined with a lower “new normal” for activity levels, will lead to assets being scrapped, companies closing their doors, and leverage being reduced (for many, likely through bankruptcy). It might take until 2023 for the rig count to get back over 400 again, which is a far cry from the prior peaks. The industry was built for a 2,000-rig market, rather than a new peak that might be 500-600 rigs.

NORTH AMERICA: CANADA

Canada is in complete disarray. As we noted earlier, Canada is going through its sixth contraction in 10 years. The land rig count is at its lowest in modern history, bottoming in recent weeks at only 12 units. This compares to the previous trough of 34 units in May 2016 (week 18), as Canada’s rig count typically bottoms in weeks 18-19 and begins to rise sharply over the following weeks. However, the rig count continued to drop by 13 units this year through week 26 vs. rising by 40 over the same period in 2016 and averaging +72 over the prior four years (2016–2019).

We expect Canadian capital spending to decline 35.9%, to $12.766 billion. This stands in stark contrast to our original outlook for 2020, which called for a slight, 0.6% gain in spending, to $130 million.

MIDDLE EAST

Fig. 2. E&P spending by select Middle East companies.

We expect spending by select Middle Eastern companies to fall 12.5% on a year-over-year basis for 2020, down from anticipated growth of 8% in our December report, Fig. 2. The sharp decline in oil prices in March commanded an immediate response, and Saudi Arabia implemented plans to cut production to 7.5 MMbopd, or 40% from April levels, while the UAE and Kuwait joined in with cuts of 180,000 bopd.

We believe companies in the region are implementing 10%-to-20% reductions across their upstream activities, with the overall E&P capex down 12.5%, as several of the largest players remain committed offshore. For example, Saudi Aramco is moving ahead on a new shipyard to manufacture jackups and land rigs. We expect regional E&P capex to end the year 5% below 2017 levels and 29% below the 2014 peak, back toward the 2012/2013 level.

Saudi Aramco is weighing bids for new long-term offshore maintenance contracts involving its huge Marjan oil field, which could be valued at $1.5 billion to $2 billion annually. However, the Kingdom deferred plans to FID the $5-billion Zuluf field until at least fourth-quarter 2021. Meanwhile, ADNOC has plans to expand Al Dabbiya and Umm Al Dalkh oil fields, with new EPC tenders issued despite delaying the $20-billion Hail & Ghasha sour gas project.

In contrast, Qatar Petroleum is moving forward with its LNG expansion strategy and has signed $19 billion of contracts with three South Korean shipyards to build 100 LNG carriers through 2027. Despite the global LNG glut, the company plans to expand its North Field’s LNG production capacity from 77 MTPA currently to 126 MTPA by 2027. Meanwhile, BP is in early-stage discussions to sell a 10% stake of its total 60% interest in the Khazzan natural gas field in Oman for an estimated $1 billion.

LATIN AMERICA

We expect spending by select Latin American companies to decrease 24% from 2019 levels, accelerating from a modest 3% contraction in our December survey. Operators increased spending for a second consecutive year in 2019, helping capex recover 22% off the 2017 trough. Unfortunately, the decline we envision for 2020 will more than offset gains from the prior two years. Latin American E&P capex is now on par with 2007 levels.

Despite poor results from the sixth pre-salt round, where only one area was successfully auctioned off, Brazil’s Petrobras plans to divest stakes in some non-core exploration acreage in the Espirito Santos basin. The NOC plans to shoot new 3D seismic in mature Campos basin fields, where the company plans to deploy two new FPSOs to revitalize aging fields. While majors are postponing exploration, due to lower oil prices, they continue to view Brazil as a key upstream destination.

In contrast, majors such as Chevron continue to wind down operations in Venezuela, where production has fallen 20% thus far, this year, due to lower oil prices and intensifying U.S. sanctions. Rosneft also terminated its operations in Venezuela. Argentina’s government is planning to launch new subsidies to stimulate upstream investments, while ExxonMobil continues to advance work in the Guyana-Suriname basin.

RUSSIA/FSU/EASTERN EUROPE

We expect spending by select Russian and FSU companies to fall 31% from 2019 levels, which is a sharp reversal from 6% growth in our December survey. This marks the third annual decline for the region, with the net cumulative fall at 38% from 2017 levels. E&P spending in Russia and the FSU region is now poised to fall to levels not seen since 2007/2008.

Russia, along with Saudi Arabia, Kuwait and UAE, agreed to a record 10%, 9.7-MMbopd production cut in global supply for May and June, which has now been extended through July. Russian oil production fell to 8.59 MMbopd in May, near the country’s target, and Russian oil producers’ compliance with the OPEC+ quota is clearly reflected in their revised 2020 capex plans. Capex is also lower, due to foreign currency exchange losses, with the Russian ruble weakening against the U.S. dollar. Meanwhile, gas producers have seen a decline in demand, due to the global shutdown but continue to forge ahead with new development projects.

Russia’s largest oil producer, Rosneft, expects OPEC+ production cuts to extend into 2022. The giant is ditching plans to rehabilitate Samotlor oil field in West Siberia, where Rusgazalliance has started phase 1 of a three-year development of Semakovskoye field. The Russian independent will drill 19 wells to bring 7.5 Bcm of natural gas online in the region’s first horizontal development program.

Lukoil also continues to make progress on its third greenfield development in the Caspian Sea, with first oil scheduled for 2022. With two other developments in the area, the company has plans to drill four additional exploration wells. Meanwhile, Gazprom has all but halted gas exports through the Yamal pipeline to Europe, as Russian shipments across Ukraine into Europe ran at about half-capacity in May.

Romanian independent Black Sea Oil & Gas (BSOG) is 30% complete in its $400M Midia gas project, with first gas slated for 2021. Meanwhile, Gazprom has all but halted gas exports through the Yamal pipeline to Europe, as Russian shipments across Ukraine into Europe ran at about half of capacity in May. ExxonMobil is trying to exit the giant Neptun Deep JV with OMV Petrom in Romania.

WESTERN EUROPE

We expect spending by select European companies to decrease 29% from 2019 levels, down from a modest +1% gain expected in our December survey. This ends three straight years of positive growth since 2016, with the net cumulative gain at almost 26% off the trough and within 22% of the 2014 peak. We now expect the region to establish a new low, with the decline more than offsetting improvements over the prior three years. Spending by a select group of European companies is now 11% lower than the 2016 trough and 45% below the 2014 peak, with E&P capex back to 2006/2007 levels.

The Norwegian government is finalizing a support package for the energy industry. It may include temporary changes in the petroleum tax system on the Norwegian Continental Shelf. Spending should contract about 20% this year, and another 16% in 2021, with both exploration and field development taking a hit as some major developments shift into the completion phase.

Meanwhile, various agencies are stepping up efforts to develop new low-carbon technologies targeting hydrogen, batteries, offshore wind and green shipping. A new study by the University of Aberdeen estimates more than a quarter of the UK North Sea’s reserves, or about 4.2 Bbbl, are “uneconomic” at $45/bbl.

INDIA/ASIA/AUSTRALIA

Fig. 3. E&P spending by select Indian, Asian and Australian companies.

We expect spending by select Indian, Asian and Australian companies to decrease 17% from 2019 levels, besting all but the Middle East’s 13% contraction, Fig. 3. Spending finally accelerated in the region last year, with overall capex increasing 13% after hovering around the $74-$75-billion trough for three consecutive years. We had initially projected modest gains of 1% for 2020. However, a 17% decline will establish a new low that is 44% below the 2013 peak, putting regional capex back on par with levels not seen since 2007/2008.

While 2019 saw increased drilling, with the Baker Hughes* rig count increasing 4% on average, companies are shifting priorities in 2020. Asian companies have partly cut capex for acquisitions, with Santos completing the $1.26-billion acquisition of ConocoPhillips’ Northern Australia and Timor-Leste assets. JadeStone and New Zealand Oil & Gas are on the lookout for new producing assets and development projects, as well as exploration prospects.

In contrast, India’s ONGC continues to focus on domestic production and is moving forward with a $700-million pipeline replacement project and the $1-billion Daman Upside project, which will require a large offshore processing platform. Mubadala is also moving ahead with the $1-billion Pegaga gas project offshore Malaysia, while CNOOC remains active and recently confirmed a 730-MMbbl oil discovery in Bohai Bay. The company launched an offshore licensing round for foreign companies to bid on 15 blocks through the end of September targeting deepwater and HPHT acreages.

AFRICA

We expect spending by select African companies to decline 43% in 2020, with the year-over-year decline the worst of any international region and on par with the collapse in the U.S. We had initially anticipated the same group of companies to increase capex 3% and build on the 9% growth posted in 2019, which capped three consecutive years of favorable growth. Spending had increased 40% off the 2016 trough and recovered within 16% of the 2012 peak. However, a 43% decline in 2020 will establish a new low in our survey that is 21% below the 2016 trough and 52% below the 2012 peak.

Nigeria’s Department of Petroleum Resources launched its long-awaited marginal field licensing round, covering 57 undeveloped discoveries. A list of prequalified bidders is expected to be announced shortly, though a bid deadline has yet to be communicated. The managing director of the Nigerian National Petroleum Corporation (NNPC) recently called for the region to drive down its production cost to $10/Bbl or less to compete with fellow OPEC members; but high costs, geopolitical turmoil and security issues have hampered the region and several Majors are seeking to divest assets.

Chevron has plans to divest eight onshore and shallow-water blocks in Nigeria, while Total seeks to sell its 12.5% stake in Block OML 118 that includes the prolific Bonga, Bonga Southwest and Aparo fields. ExxonMobil is also looking to sell assets in Nigeria and Chad. As a result, we do not anticipate a recovery in E&P spending for Africa in the near term.


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Data Security

Pipe Exchange implements data security systems and procedures to secure the information stored on Pipe Exchange computer servers. Such systems and procedures reduce the risk of security breaches, but they do not provide absolute security. Therefore, Pipe Exchange cannot guarantee that the Website and Services are immune to unauthorized access to the information stored therein and to other information security risks.

 

Our Commitment to Data Security. To prevent unauthorized access, maintain data accuracy and ensure the correct use of information, we have applied reasonable and appropriate physical, electronic and managerial procedures to safeguard and secure the information we collect online. We also limit access to personal data and confidential information on our systems to only those employees with a specific need to access this information. However, due to technological limitations and the risk of unlawful interceptions and accessing of transmissions and/or data, we cannot completely assure you, and you should not expect, that your personal information, and any other electronically communicated information, will be absolutely confidential.

The security of your personal information is important to us. When you enter sensitive financial information via our Website, the transmission of that information is encrypted using secure socket layer technology (SSL).

Please remember that you play a valuable part in security as well. To the extent you have created an account on our Website, your password to access our site, which you select at registration, should never be shared with anyone and should be changed frequently.  After you have finished using our site, you should log off and exit your browser so no unauthorized persons can use our site with your name and account information.

Information Retention and Access to Personal Information. We’ll retain information for as long as your account is active or as needed to provide you the Services, to comply with applicable law, resolve disputes, and to enforce our agreements.   If your personally identifiable information changes, or if you no longer desire to use and access our Services, you may correct, update, delete/deactivate your information by emailing Pipe Exchange via the contact information listed below. Before Pipe Exchange is able to provide you with any information or correct any inaccuracies, however, we may ask you to verify your identity and to provide other details to help us to respond to your request. But please note: (1) there might be some latency in deleting this information from our servers and back-up storage; (2) we will not delete anonymized data and may continue to use it as describe in this Privacy Policy; and (3) we may retain information if necessary to comply with our legal, tax or accounting obligations, resolve disputes, manage security risks, or enforce our agreements. Even if you cease your use of the Services, we may retain certain information in order to meet our obligations.

Under California Civil Code Sections 1798.83-1798.84, California residents are entitled to ask us for a notice identifying the categories of personal information which we share with our affiliates and/or third parties for marketing purposes, and providing contact information for such affiliates and/or third parties.  If you are a California resident and would like a copy of this notice, please submit a written request to: privacy@pipexch.com

International Transfer of Information Collected

We are a global company, with customers around the world and it is important to note that the Services, and the Website, may be operated via servers situated in the United States and elsewhere. If you are located outside of the United States, please be aware that any information which you supply to Pipe Exchange (including, without limitation, personal information (e.g., your name, phone number, email address, etc.) may be transferred to, processed, and used in the United States and elsewhere. To provide you with the Services, you irrevocably and unconditionally consent that we may store, use, process, transfer and transmit such information in accordance with this Privacy Policy in the United States and locations around the world – including those outside your country which may provide different rules, regulations, and protections regarding privacy. Information may also be stored locally on the devices used to access the Services, which may be mobile.

We have taken appropriate safeguards to ensure that your personal data will remain protected in accordance with this Privacy Policy, whether your personal data is within our control or has been entrusted to our third party service providers and partners.

Changes to this Privacy Policy

From time to time, Pipe Exchange may change the terms of this Privacy Policy. Changes will take effect once they are posted online and by accessing and/or using the Website or Services after we make any such changes to this Privacy Policy, you are deemed to have accepted such changes.  If you do not agree with any of the amended terms, you must avoid any further use of the Website and/or Services offered by Pipe Exchange.

 

Inquiries or Concerns?

You may contact Pipe Exchange by emailing us at privacy@pipexch.com and we will do our best to provide a prompt response to your question.

PIPE EXCHANGE TERMS OF USE

Last updated: August 2019

Welcome to https://pipexch.com/Pipe Exchange (the “Website”). The Website is owned and operated by Pipe Exchange LLCPipe ExchangePipe Exchange including its related companies, affiliates and subsidiaries (collectively “Pipe Exchange,” “we,” “us,” “our”). We make the Website available to you, subject to the following Terms of Use (these “Terms of Use”). PLEASE READ THE FOLLOWING TERMS OF USE CAREFULLY BEFORE USING THE WEBSITE. By using the Website, you agree to these Terms of Use and agree they create a legally binding agreement between you and Pipe Exchange. If you do not agree to these Terms of Use, you may not use the Website. These Terms of Use are effective unless and until terminated by Pipe Exchange.

Minors are not authorized to access or use the Website for any purpose.

CHANGES TO TERMS OF USE

Pipe Exchange reserves the right, at any time, to modify, amend, alter or update these Terms of Use. These changes will be effective as of the date we post the revised version. By continuing to use the Website following such modifications, amendments, alterations or updates, you agree to be bound by such modifications, amendments, alterations or updates. Therefore, you should periodically visit this page to review our most current Terms of Use.

You may access the current version of these Terms of Use at any time by clicking on the link marked “Terms of Use” at the bottom of each page of the Website.

PRIVACY POLICY

In the course of your use of the Website, you may be asked to provide certain personalized information to us (such information referred to hereinafter as “User Information”).  Our information collection and use policies with respect to the privacy of such User Information are set forth in the Website’s Privacy Policy which is incorporated herein by reference for all purposes.  You acknowledge and agree that you are solely responsible for the accuracy and content of User Information, and you agree to keep it up to date. 

INTELLECTUAL PROPERTY RIGHTS

Pipe Exchange respects the intellectual property rights of others. As between you and Pipe Exchange, and except any User Information which you provide, all rights, title and interests in the Website, including all the content (including, for example, audio, photographs, illustrations, graphics, other visuals, video, copy, software, etc.), code, data and materials thereon, the look and feel, design and organization of the Website, and the compilation of the content, code, data and materials on the Website, including but not limited to any copyrights, trademark rights, patent rights, database rights, moral rights, sui generis rights and other intellectual property and proprietary rights therein (collectively the “Content”) are owned by Pipe Exchange or by third parties who have licensed or provided their Content to us. The Website is protected under Trademarks (as defined below), copyright, patent, trade secret and other intellectual property rights laws, and your use of the Website does not grant to you ownership of any Content you may access on the Website. You are prohibited from using the Website to infringe or violate any intellectual property rights. Pipe Exchange may terminate your right to access the Website if it believes you are using the Website in a manner that infringes the copyright, trademark, patent or other intellectual property rights of another.

We may investigate occurrences that may involve violations of the security of the Services or of the law and we may involve, and cooperate with, law enforcement authorities in prosecuting users who are involved in such violations.

The trademarks, logos, service marks and trade names (collectively the “Trademarks”) displayed on the Website or on content available through the Website are registered and unregistered Trademarks of ours and others and may not be used unless authorized by the trademark owner.  All Trademarks not owned by us that appear on the Website or on or through the Website’s services, if any, are the property of their respective owners.  Nothing contained on the Website should be construed as granting, by implication, estoppel, or otherwise, any license or right to use any Trademark displayed on the Website without our written permission or that of the third-party rights holder.  Your misuse of the Trademarks displayed on the Website is strictly prohibited.  Pipe Exchange will aggressively enforce its Trademark rights to the fullest extent of the law, including the seeking of criminal prosecution.

PERSONAL USE ONLY

The Website and the Content are intended for your personal use.  You may access and view the content on the Website via your computer or other internet compatible device, and make single copies or prints of the content on the Website for your personal, internal use only.   The Website and the services offered on or through the Website, including Pipe Exchange’s e-publication and any other content and materials thereon, are only for your personal, non-commercial use. Except as otherwise provided on the Website, you may not modify, copy, distribute, transmit, display, perform, reproduce, publish, license, sell, create derivative works from, transfer, or sell any information, software, products or services obtained from the Website. Use of the Website to sell a product or service, or to increase traffic to your website for commercial reasons, such as advertising sales is expressly forbidden.

PROHIBITED USE

Any commercial distribution, publishing or exploitation of the Website, or any content, code, data or materials on the Website, is strictly prohibited unless you have received the express prior permission of Pipe Exchange or the applicable rights holder.  You may not otherwise download, display, copy, reproduce, distribute, modify, perform, transfer, create derivative works from, sell or otherwise exploit any content, code, data or materials on the Website.  If you make other use of the Website, or the content, code, data or materials thereon, except as otherwise provided above, you may violate copyright and other laws of the United States, other countries, as well as applicable state laws and may be subject to liability for such unauthorized use.  Pipe Exchange will aggressively enforce its intellectual property rights to the fullest extent of the law, including the seeking of criminal prosecution.

SECURITY

You are prohibited from violating, or attempting to violate the security of the Website. Any such violations may result in criminal and civil liabilities to you.  You warrant and agree that, while using the Website and the various services and features offered on or through the Website, you shall not: (a) impersonate any person or entity or misrepresent your affiliation with any other person or entity; (b) insert your own or a third party’s advertising, branding or other promotional content into any of the Website’s content, materials or services, or use, redistribute, republish or exploit such content or service for any further commercial or promotional purposes or take any action that would constitute or could be interpreted as an endorsement or sponsorship by Pipe Exchange of any third party site, content, information or other materials, or in any manner that would violate the terms and conditions of any such third party sites; (c) attempt to probe, scan, or test the vulnerability of any system or network; or (d) attempt to gain unauthorized access to data not intended for you and/or other computer systems through the Website.  You shall not: (i) engage in spidering, “screen scraping,” “database scraping,” harvesting of e-mail addresses, wireless addresses or other contact or personal information, or any other automatic means of accessing, logging-in or registering on the Website or for any services or features offered on or through the Website, or obtaining lists of users or obtaining or accessing other information or features on, from or through the Website or the services offered on or through the Website, including, without limitation, any information residing on any server or database connected to the Website or any services offered on or through the Website; (ii) obtain or attempt to obtain unauthorized access to computer systems, materials, information or any services made available on or through the Website through any means; (iii) use the Website or the services made available on or through the Website in any manner with the intent to interrupt, damage, disable, overburden, or impair the Website or such services, including, without limitation, sending mass unsolicited messages or “flooding,” “spamming,” or “crashing” any systems; (iv) use the Website or the Website’s services or features in violation of Pipe Exchange’s or any third party’s intellectual property or other proprietary or legal rights; or (v) use the Website or the Website’s services in violation of any applicable law.  You further agree that you may not attempt (or encourage or support anyone else’s attempt) to circumvent, reverse engineer, decrypt, or otherwise alter or interfere with the Website or the Website’s services, or any content thereof, or make unauthorized use thereof.  You agree that you will not use the Website in any manner that could damage, disable, overburden, or impair the Website or interfere with any other party’s use and enjoyment of the Website. You may not obtain or attempt to obtain any materials or information through any means not intentionally made publicly available or provided for through the Website. Pipe Exchange will investigate any alleged violations and will cooperate with law enforcement agencies in their investigations.

THIRD-PARTY CONTENT

Some of the information and material available through the Website are provided to Pipe Exchange by third parties (“Third-Party Material”). In some instances, the source of the Third-Party Material is identified. Third-Party Material is provided for your convenience only and Pipe Exchange does not endorse these materials or the parties who supply them to us. Pipe Exchange does not warrant or represent that these Third-Party Materials are current, accurate or reliable.

COPYRIGHT AGENT

We respect the intellectual property rights of others, and require that the people who use the Website do the same.  If you believe that your work has been copied in a way that constitutes copyright infringement, please forward the following information to Pipe Exchange’s Copyright Agent, designated as such pursuant to the Digital Millennium Copyright Act, 17 U.S.C. § 512(c)(2), named below:

  • Your address, telephone number, and email address;
  • A description of the copyrighted work that you claim has been infringed;
  • A description of where the alleged infringing material is located;
  • A statement by you that you have a good faith belief that the disputed use is not authorized by the copyright owner, its agent, or the law;
  • An electronic or physical signature of the person authorized to act on behalf of the owner of the copyright interest; and
  • A statement by you, made under penalty of perjury, that the above information in your Notice is accurate and that you are the copyright owner or authorized to act on the copyright owner’s behalf.
  • For all email submissions please include the subject line: DMCA Takedown Request.

 

Pipe Exchange has adopted a policy of terminating, in appropriate circumstances, accounts of users of the services or the Website who are deemed to have repeatedly uploaded content that infringes the intellectual property rights of others.

 

Copyright Agent:

Pipe Exchange Legal

c/o Pipe Exchange LLC

14025 West Road.
Suite #100
Houston, TX 77041

Phone: + (713) 934-9480

Email: dmca@pipexch.com

DISCLAIMER OF WARRANTIES

THE WEBSITE AND ITS CONTENT ARE PROVIDED ON AN “AS IS” AND “AS AVAILABLE” BASIS, WITHOUT REPRESENTATIONS OR WARRANTIES OF ANY KIND WHATSOEVER. PIPE EXCHANGE, TO THE FULLEST EXTENT PERMITTED BY LAW, DISCLAIMS ALL WARRANTIES, INCLUDING THE WARRANTY OF MERCHANTABILITY, NON-INFRINGEMENT OF THIRD PARTIES RIGHTS, AND THE WARRANTY OF FITNESS FOR PARTICULAR PURPOSE. PIPE EXCHANGE MAKES NO WARRANTIES ABOUT THE ACCURACY, RELIABILITY, COMPLETENESS, OR TIMELINESS OF THE MATERIAL, SERVICES, SOFTWARE, TEXT, GRAPHICS, AND LINKS FOUND OR CONTAINED ON THE WEBSITE. PIPE EXCHANGE DOES NOT WARRANT THAT THE WEBSITE, THE CONTENT, OR ITS SERVERS ARE FREE OF VIRUSES OR OTHER HARMFUL COMPONENTS. YOU UNDERSTAND AND AGREE THAT YOU OBTAIN MATERIAL THROUGH THE USE OF THE WEBSITE AT YOUR OWN DISCRETION AND RISK AND THAT YOU WILL BE SOLELY RESPONSIBLE FOR ANY DAMAGES TO YOUR COMPUTER SYSTEM OR LOSS OF DATA THAT RESULTS.

ALL MATERIAL CONTAINED IN THE WEBSITE IS FOR GENERAL INFORMATION ONLY, HAS NOT BEEN INDEPENDENTLY VERIFIED, HAS NOT BEEN RECOMMENDED BY ANY FEDERAL OR STATE REGULATORY AUTHORITY AND MAY CONTAIN ERRORS OR OMISSIONS OF MATERIAL INFORMATION. THE MATERIAL AND INFORMATION CONTAINED ON THE WEBSITE SHOULD NOT, THEREFORE, BE USED OR RELIED UPON FOR ANY SPECIFIC REASON OR APPLICATION WITHOUT INDEPENDENT COMPETENT PROFESSIONAL EXAMINATION AND VERIFICATION OF ITS ACCURACY, COMPLETENESS, SUITABILITY AND APPLICABILITY. ANYONE MAKING USE OF THE MATERIAL DOES SO AT HIS/HER/ITS OWN SOLE AND EXCLUSIVE RISK AND ASSUMES ANY AND ALL ACTUAL OR POTENTIAL DAMAGE OR LIABILITY RESULTING FROM SUCH USE.

LIMITATION OF LIABILITY

IN NO EVENT SHALL PIPE EXCHANGE BE LIABLE FOR ANY DAMAGES WHATSOEVER (INCLUDING, WITHOUT LIMITATION, INCIDENTAL, CONSEQUENTIAL OR PUNITIVE DAMAGES, LOST PROFITS, OR DAMAGES RESULTING FROM LOST DATA OR BUSINESS INTERRUPTION) RESULTING FROM THE USE OR INABILITY TO USE MATERIAL ON THE WEBSITE OR SITES LINKED TO THE WEBSITE, WHETHER BASED ON WARRANTY, CONTRACT, TORT, OR ANY OTHER LEGAL THEORY, AND WHETHER OR NOT PIPE EXCHANGE IS ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.

TERMINATION

Pipe Exchange may terminate, change, suspend or discontinue any aspect of the Website or the Website’s services at any time.  Pipe Exchange may restrict, suspend or terminate your access to the Website and/or its services if we believe you are in breach of our terms and conditions or applicable law, or for any other reason without notice or liability.  Pipe Exchange maintains a policy that provides for the termination in appropriate circumstances of the Website use privileges of users who are repeat infringers of intellectual property rights.

USER’S REMEDY

If you are dissatisfied with any portion of the Website or with any of these Terms of Use, your sole and exclusive remedy is to discontinue using the Website.

GOVERNING LAW AND VENUE

These Terms of Use and the relationship between you and Pipe Exchange shall be governed by the laws of the United States and the State of Florida without regard to its conflict of law provisions. You hereby irrevocably submit and consent to the personal and exclusive jurisdiction of the courts located within Miami-Dade County, Florida and agree that any cause of action that may arise under these Terms of Use and all disputes arising out of or relating to the use of the Website shall be commenced and be heard in the appropriate court in Miami-Dade County, Florida. The failure of Pipe Exchange to exercise or enforce any right or provision of these Terms of Use shall not constitute a waiver of such right or provision. If any provision of these Terms of Use is found by a court of competent jurisdiction to be invalid, the parties nevertheless agree that the court should endeavor to give effect to the parties’ intentions as reflected in the provision, and the other provisions of these Terms of Use remain in full force and effect. 

QUESTIONS ABOUT TERMS OF USE

If you have any questions regarding these Terms of Use, please either:

Send an email to sales@pipexch.com

Write to Pipe Exchange at the following address:

14025 West Road

Suite 100

Houston, TX 77041

 

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