At a time when sub-$ 70
oil has driven market conditions for more than a year, are industry players now seeing the new economics as a basis for medium- term strategies rather than a temporary blip? A recent survey by Lloyd’s Register Energy confirmed this, with 67% of respondents predicting oil prices of between $ 50 and $ 70 pb in 2016, and many anticipating only moderate rises in 2017.
However, following OPEC’s recent announcement is this thinking correct? Few believe a return to $ 100+ pb is on the cards in the foreseeable future. But oil and gas companies have other challenges too...
Duco de Haan, commercial development director, Lloyds Register Energy