In this White Paper:
- Since the beginning of 2016, oil prices have slipped another 15 percent to their lowest level for more than 12 years.
- Production continues to be resilient, though as Stein’s Law suggests, if a trend cannot continue, it won’t.
- The new environment of “even lower for even longer” will have diverse consequences for different sectors of the oil and gas industry.
- We look at the prospects for each sector and consider the key questions they need to be addressing today to ensure their viability in the medium term.
"Earlier this month, oil prices slipped to their lowest level for more than 12 years. Despite this drop, output from both OPEC and non-OPEC producers remains surprisingly resilient. With supply outpacing demand by more than 1 million bpd, options for outlets are becoming limited and the “end game” for oversupply is expected to start soon, as prices plunge further, forcing some producers to shut in production. As prices slip below sustainable levels for many producers, we explore the implications for the different sectors of the oil and gas industries..."