Oil prices in crisis
Considerations and implications for the oil and gas industry
The oil market is experiencing the largest price decline since 2008 as prices tumbled from over $100 per barrel in July 2014 to under $50 per barrel in January 2015.
Why are oil prices declining?
In order to understand the market fundamentals that have caused this price decline, key questions concerning the supply/demand balance, OPEC actions, and full-cycle costs for different types of resources must be answered. Oil prices in crisis: Considerations and implications for the oil and gas industry explores the following questions and provides answers for companies and stakeholders operating in a volatile price environment:
- Why did oil prices correct so suddenly?
- Is OPEC content to sit and wait while high-cost producers fall by the wayside?
- Is China, the largest driver of global oil demand growth, rebalancing its economy, or is it due for a painful correction?
- How much new supply is expected to come online in 2015 and 2016 despite the current price environment?
- Will the industry stabilize and balance after 2016?