How Oil and Gas Companies can Optimize Technology Performance and Costs During Oil Price Volatility
Type
E-journal
Date
21 Jan 2015
Jurisdiction
Saudi Arabia, United Arab Emirates
Taxonomy
Companies & Corporate Bodies, Oil & Petroleum
Copyright
LexisNexis
Relevant company
Latham & Watkins LLP
Analysis
An unexpected surge in production coupled with weakened global demand has resulted in a 50% drop in the price of crude oil since June 2014 and currently averaging US$50 a barrel. The Organization of the Petroleum Exporting Countries (OPEC) announced it would leave market forces to determine crude oil price and would not cut oil output. The current oil price is the lowest it has been since Spring 2009. As oil and gas companies begin to feel the pressure of oil price volatility, efforts become focused on reducing capital and operating costs while maintaining, or improving operational services, particular technology services.