The crude downturn for exploration & production companies
One situation, diverse responses
Falling oil prices, reductions in drilling activity, and lackluster demand have led to an uncertain path for exploration & production companies. Recent analysis of the oil and gas industry has reflected five options taken by exploration & production companies to traverse this new environment. Discover more about each option and the impact certain decisions have had on exploration & production companies.
The oil and gas downturn has led exploration & production companies to five paths
Deloitte’s analysis delves into how pure-play exploration & production (E&P) companies have prioritized and used various options to survive in a low oil price environment. Despite a significant reduction of drilling activity, supply has declined only marginally, the demand uptick due to reduced prices is less than expected, and oil prices—after stabilizing for a brief period in 2Q15—have slipped to an 11-year low of under $30/bbl.
This report examines five options chosen by E&Ps and analyzes the companies' statuses and responses under each or a set of options.