Full Title: Oil and Gas Reality Check 2015: A Look at the Top Issues Facing the Oil and Gas Sector
Author(s): Deloitte
Publisher(s): Deloitte
Publication Date: January 1, 2015
Full Text: Download Resource
Description (excerpt):
What a difference a year makes. Last year, we examined industry fundamentals ranging from prevailing macroeconomic conditions, the supply‐demand balance and regulatory constructs to cost components, commodity prices and the impact of geopolitics. Stemming from that analysis, we considered the waxing and waning of dominance among suppliers; the progression from regionalization to globalization in natural gas markets and the reverse in oil markets; a shift in the global energy mix; the swelling of capital projects to “mega” proportions; and a move towards greater interdependencies among nations.
This year, however, virtually all of these ‘fundamentals’ are being called into question. Certainly, declining oil prices have taken a toll on the global oil and gas industry. In December 2014, West Texas Intermediate (WTI) crude prices dropped from over $100 per barrel to less than $60 per barrel, with Brent oil prices following suit. The slide continued into 2015, dipping below $45 per barrel before making a modest recovery. The glut of oil amid lagging world demand is altering trade ows and raising concerns for traditional suppliers.