Global Oil Sector Will Shift to Upcycle in 2018
The global oil and gas sector will shift from downcycle to upcycle in 2018, according to a new report from BMI Research.
“Oil prices reached their nadir in 2016 and have averaged c.20 percent higher on an annual average basis in 2017,” the report said.
“However, the recovery in price has yet to be fully reflected in the market,” the report added.
Many of the trends unfolding in the global oil sector over 2017 will remain in play next year, a BMI representative said in a statement sent to Rigzone.
BMI expects capex will continue to grow gradually at 4.3 percent and companies will continue to target margin, rather than revenue, accretive investments, with cost control remaining a key focus.
“Market conditions will likely be broadly supportive of M&A activity in 2018, with a more stable price environment, stronger balance sheets and tighter bid-ask spreads supporting deal making,” the report said.
“However, as was the case in 2017, asset purchases and divestments will largely be directed towards high-grading portfolios, rather than a blanket expansion of acreage or reserves,” the report added.
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- Gunvor CEO Sees Russian Refining Capacity Taking Hit from Drone Strikes
- These Factors Helped Brent Oil Price Break Above $85
- Sinopec Engineering Posts Higher Annual Petrochemicals Revenue
- Imperial Pipeline in Winnipeg Goes Offline for Three Months
- Gaz System to Acquire Gas Storage Poland
- Subsea7 Secures Contract to Service Woodside's Trion
- Adnoc Inks Supply Deal for Ruwais LNG Project with Germany's SEFE
- EIA Boosts USA Crude Oil Production Forecasts
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- EIA Drops 2024 Henry Hub Gas Price Forecast
- EIA and Standard Chartered Offer Up Latest Oil Price Predictions
- Red Sea Region Sees Another Watershed Incident
- Chevron Oil Project in Kazakhstan to Cost $48.5B
- OPEC Voices Encouragement after IEA Affirms Support for Oil Security
- Biden Govt Bares Strategy for Freight Charging, Hydrogen Fueling Infra
- Rystad Looks at the Buzz Around White Hydrogen
- Ukraine Hits Third Russian Refinery In Escalating Drone Strikes
- VIDEO: Missile Attack Kills Crew Transiting Gulf of Aden
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- What Is the Biggest Risk to Offshore Oil and Gas Personnel in 2024?
- Is Peak Oil Demand Close?
- Vessel Sinks in Red Sea After Missile Strike
- JP Morgan, Standard Chartered Reveal Latest Oil Price Forecasts
- Exxon Rights in Stabroek Do Not Apply to Hess Merger with Chevron: Hess
- Rystad Forecasts Net Production of Top Permian Producers in 2024
- Analysts Reveal Latest Oil Price Outlook Following OPEC+ Cut Extension