As with any market, supply and demand are key to price. Recently, nowhere else has this been seen more acutely than in the oil & gas markets. Headlines at the turn of the year were dominated by the fall in oil prices. Brent crude remains at around US$58 a barrel, down from US$100-120 only last summer. So, four months on from OPEC’s decision (in November 2014) not to cut supply in the face of reducing global demand and increased non-OPEC production, how have companies in the oil sector fared?Up pipeThose with deep pockets will obviously fare better than others. Whilst the major oil & gas companies have cut back on exploration, staff and capital expenditure, oil price volatility is not new to them and these companies are generally used to weathering and planning for such storms. Equally, however, oil & gas companies are keen overall not to stop new investment or let skilled staff go. Previous downturns have shown this to be a poor strategy for the medium turn but it needs to be balanced against severe margin squeeze with high-cost production fields (such as US shale oil, Canadian tar sands, the deepwater Gulf, Arctic and UK continental shelf fields).Down-pipeThose… Read full this story
- Oil hits two-decade lows on low demand, storage woes
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- India dips in to weakened crude market to fill up its strategic oil reserves
- PNGRB plans to extend deadlines for city gas projects hit by lockdown
- Banks rush to rein in financing for oil firms
- Global oil supply to fall 6 per cent by 2030 due to delayed projects: data
- Pakistan fails to benefit from oil price crash
- Will Vietnam issue oil bonds?
- Producers agonise in oil price slump
- India records lowest crude oil production in at least 18 years
Coming Down the Pipeline: Risk and Opportunity for Oil and Gas Sector in Era of Low Oil Prices have 293 words, post on www.natlawreview.com at April 9, 2015. This is cached page on Law Breaking News. If you want remove this page, please contact us.