View from London: Price swings change industry on many fronts

摘要

What a difference a year makes in the oil industry -- or perhaps in this case 5 months. Companies in 2009 are likely to slash capital spending, drill fewer wells, and delay or cancel investment decisions. The worrying consequence of this is underinvestment that will limit future supply and possibly produce another violent price cycle. In Europe, gas demand is falling due to the previous spate of high prices and the weak economic outlook. But the region also faces a potential of oversupply of gas with an unprecedented level of LNG projects coming on stream in the next 3 years, according to energy consultancy Wood Mackenzie.