Short-Term Pain Leads To Long-Term Gain

摘要

Oil and gas operators can expect more contraction-perhaps for up to another year-as companies continue to adjust to low oil prices. But overall, long-term global demand will continue to climb and offset spare capacity that is more restricted than some may realize, an industry analyst told members of the Permian Basin Petroleum Association. Speaking at PBPA's 53rd annual meeting, Oct. 15 at the Midland Petroleum Club, Colin Fenton, a strategic adviser with Blacklight Research LLC, said prices might remain soft over the next year and force companies to continue to reduce labor and consolidate assets. "But after that, this part of the world is going to be the sweet spot on the planet for energy production," suggested Fenton, keynote speaker at PBPA's membership luncheon. "The Permian will continue to grow. Part of the Organization of Petroleum Exporting Countries' strategy is to try to throw a tomahawk this way, but at the end of the day, the world needs the oil and gas that is going to be produced in Texas, New Mexico, Oklahoma and elsewhere."