HOUSTON—The oil and gas industry, now in what is considered the longest downturn in its history, has lately shown signs of optimism.
Globally, capex is up 7% and in North America upstream spending is expected to climb 23% compared with 2016. Yet John England, Deloitte LLP’s vice chairman and U.S. energy and resources leader, calls the recovery “the slow road back.”
“The recovery we’re going to have is going to happen,” England said at the Mergermarket Energy Forum on April 20.
But the slow road carries the potential for rough patches, unfinished stretches and perhaps even sinkholes. Increased spending, hedging, greater than expected production and the continued suffering in the oilfield service sector are all catalysts for the recovery—and potential pitfalls.
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Source: Daily Dose of ShaleDirectories.com News