“It’s difficult to make predictions, especially about the future”
- Attributed to everyone from Niels Bohr to Yogi Berra
A barrel of oil today fetches less than $50, when only six months ago oil traded at over $100. How could such a drop in prices not have been anticipated? Actually, it was!
In The Headlines
John Hritcko | TRC Companies, Inc.
The latest news covering the oil and gas market for 2015 focuses almost entirely on the detrimental effects of low prices on exploration and production, making it easy to miss the bigger picture. Just as the fluctuations of the stock market do not reflect the entire state of the US economy, commodity oil and natural gas prices do not tell the whole story of our industry. Even in the face of a 50% drop in the price of a barrel of oil, and a reduction in natural gas prices, opportunities still abound for investment, especially in the midstream segment.
Since 2007, previously non-productive shale reserves have come online to unlock a wealth of new oil and gas supplies. However, the resulting surge of shale-related production revealed deficiencies in both the quantity and condition of our existing infrastructure used to bring these products to market.
Topic of Discussion
David Oliphant | MTU America
Time is money, uptime is king and engine reliability is non-negotiable. In an environment of growing complexity, the oil and gas industry is looking for ways to drive escalating service and supply costs down. Balancing the scale between engine performance and efficiency can be a tightrope walk, but with the recent leaps in advanced engine technology, the industry has welcomed new cost-cutting innovations, with new system-streamlining technologies on the horizon. Once in market, operators can expect to see maintenance and fuel costs controlled even before a new engine is installed.