Forecasts point to a strong year for the oil and gas industry, although it would not be smooth sailing.
By Angelique Moss for Born2Invest, Jan 3, 2018 With the efforts exerted in 2017 by major oil and gas industry players worldwide, 2018 holds much promise. Predictions state that the oil and gas business, particularly in the U.S., would be strong this year. Oil prices to remain robust throughout the year
Last year, the Organization of the Petroleum Exporting Countries (OPEC) and Russia agreed to limit the production and exports of crude in a bid to rebalance the market. Oil prices started this year at around $60 per barrel. The OPEC agreement’s success in strengthening oil prices is expected to continue this year, as long as the commitment to curb the glut will remain and the U.S. would not go on new drilling spree, per Forbes. There was a slowdown in U.S. drillings in the last four months of 2017, and the pace is projected to carry over in the first few months of the new year. Analysts predict that the West Texas Intermediate crude will have an average price of $55 in 2018, which is high enough for producers to earn a profit and low enough for them to keep from drilling new wells to extract shale gas and pump oil. Per Chron, the 14 members of the OPEC and Russia appear to be committed to keeping the production restraint to 1.8 million barrels a day this year. Trump’s US energy dominance agenda to benefit energy production and exports President Donald Trump’s administration made several public policy decisions in 2017 that work in favor of the U.S. energy sector. Forbes predicts that many more federal policies will be executed in 2018 that would help maximize local energy production and export capacity. […] https://born2invest.com/articles/oil-gas-industry-fare-2018/
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