The glut of supply could last years, threatening to keep prices low until the 2020s, but the oil majors are playing the long game, expecting the demand for gas to grow substantially over time.
There is still a long way to go before Mexican production can grow in a meaningful way, but several years since the landmark liberalization of the country’s energy sector, the situation is finally moving in the right direction.
The outlook for Argentina’s Vaca Muerta is arguably more positive than it has ever been, with some oil majors recently giving the go-ahead on big shale investments in the country.
If oil demand were to peak, the industry would likely see a good bit of consolidation, but the situation would not bring about a collapse.
The U.S. oil and gas sector is very upbeat with prices above $50 per barrel, but one CEO warns that the industry must manage its growth or the market could collapse again.
Although revisions to the Iran Petroleum Contract raise questions about the attractiveness of the country’s business climate for foreign companies, the approval represents a major step forward to opening Iran for business.
Even though the oil market has risen considerably since February, bankruptcies, staff layoffs, capital expenditure cuts, and falling productivity continue to be commonplace during the price downturn that has so far lasted for seven straight quarters.