What the EIA is saying today…..could be light at the end of the tunnel.
Today Reuters stated “EIA sees oil market rebalancing in 2017; US production at record high by 2021.” Oil markets to rebalance in 2017 thanks to falling US production but that decline will prove short-lived as efficiency gains will push US output to new records by the beginning of the next decade.
Over the course of 2015 to 2021, US output is expected to reach a record high of 14.2 million barrels per day (bpd), after dipping initially this year and next, the IEA said in this report.
Production of US shale oil, known as light, tight oil (LTO), is expected to drop by 600,000 bpd next year, and a further 200,000 bpd next year before gradually recovering.
So how do we maintain our businesses and employees until then? If you can, go back to your core business and build it up again. Be creative in your deals; make a marketing plan and review it periodically, set measureable goals and hold everyone accountable.
Continue to network with those in the oil & gas industry so you are positioned to move quickly when drilling picks up again. You’ll learn more by networking and maintaining/building strong relationships; then, attend the right events so your company name is seen even in slow times. Stay – top of mind- to those in the industry. People do business with people and this industry is a prime example of that.
And how to keep those good employess? Be creative with employees’ compensation by decreasing hours, reduction in pay, rotating furloughs but keep their benefits. Many will take the cuts, however, to the smart good workers benefits are important for their families.
This industry is known for the good pay and most will not be able to find a job they love at a better pay. However, when drilling picks up, remember those good employees and slowly increase the hours/pay. Loyal, committed employees are hard to fine; be good to yours or they will find another ‘home’.
To keep up on current events, networking and the right seminars visit http://www.shaledirectories.com/site/oil-and-gas-expo-information.html. While you are at it read the free weekly newsletters delivered to you on Saturday mornings. This is where many E &P companies are getting keeping up with activity nationally.