Slumping Oil Prices

Why Oil Prices Keep Falling?

Back in June 2014, the price of West Texas Intermediate (WTI) crude oil was around $105 and Brent was around $115 per barrel. Today we are at around $57 and $64 per barrel, respectively.  This represents about a 40% decline in global oil prices. What happened? To put things into context, let’s look back to the middle of the 2000’s when global oil consumption was surging and outstripping supply, due in large part to China. This led to the WTI oil spike of approximately $148 per barrel in July of 2008.  Since then, for the most part, oil had traded at or above $100 per barrel until the middle of 2014.  So…
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State of the Industry – Jobs

There are still no clear answers how the market will play out for 2015 for both field service and professionals in engineering and geoscience, but some expected reactions are coming exactly as expected. The overall decline for field service workers has declined nearly 45% over the last three months and needs for engineering, geoscience and technical professionals for service and operating companies as declined over 38% in that same period of time.
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Energy 2015 – Five Developments to Watch in the US and Beyond

What does 2015 have in store for the energy industry? Making predictions is always a difficult proposition, and trying to predict the price of crude is a daunting task. As they say, if you are going to forecast, forecast often.
But looking back on events and activities this past year gives us some comfort to forecast the trends and “big picture” happenings that we’ll likely see in 2015. So, here are my thoughts on the top five energy industry developments to be aware of next year – regardless of whether the price of crude oil goes up or down:
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Where the Falling Prices Affect Jobs

At the time of authoring this article, WTI for December 2015 last traded at $52.89 which is – $0.76 from prior settle. Should the futures hold, we are not expecting to rise above $50.00 until September. Along with this, according to a study by Oil & Gas Journal, currently planned capital expenditures for US producers is expected to drop 17% to $571 billion with an expected West Texas intermediate price of $70.00/bbl. However, the timeline to maintain or achieve a return to that pricing differs from company to company and leadership in many organizations may continue to recalculate additional expenditure cuts until pricing stabilization or sustained return to the WTI price which budgets were originally based against. [Read more…]