High natural gas and oil prices fueled a boon in the drilling industry from 2005 to 2014. Companies across the entire value chain thrived with numerous midstream and downstream projects. In 2015, however, the industry was hit with one of the worst downturns in decades. Faced with an uncertain future of lower oil prices and surplus supply, the oil and gas industry initially responded by cutting costs. While prices are showing some signs of recovering in 2016, many wonder what the future holds.At the Best Practices for Oil and Gas conference in The Woodlands, Texas, in September, George Friedman, Geopolitical Forecaster and Strategist, discussed the current downturn and forecasted what is likely to happen with respect to oil prices.
In George’s presentation, he discusses the importance of destabilizing areas of the world and how this will affect everything. “Everybody’s looking at the markets. And everybody’s looking at productivity and demand”, says Friedman, “and everybody’s looking at the wrong thing.” He goes on to explain how geopolitical forces as well as economics can dramatically affect commodity prices.
You can see the complete presentation recorded at the Best Practices for Oil and here.
The Best Practices for Oil and Gas conference is produced by SAP’s partner, Eventful Conferences, and will be held on October 16-19, located at the Woodlands Marriott, just north of Houston. Find more information about the conference and register here.