What two cities we talking about here?
Dateline 2015-06-08, AOG:
The oil and gas industry is facing a tale of two cities as it is experiencing the best of times and yet the worst of times said the chairman of PETRONAS, Tan Sri Sidek Hassan in a meeting at Oil and Gas Asia (OGA) 2015.
He said that the industry’s output is growing at a rapid pace thanks to shale revolution that has transformed the US market.
The US now produces around 9 MMbbl/d, an 80% growth from the 5 MMbbl/d produced in 2008 and global oil demand is expected to increase by 1.1 MMbbl/d in 2015.
“Operating cost that shot up during the highs of US$115 oil price has not decreased as fast as crude oil prices and the industry estimates an anticipated layoff of over 100,000 people worldwide during this down cycle,” Sidek advised.
It might not be possible for us to predict with certainty what the oil price would be next month or next quarter, Sidek said, but we can prepare the industry to weather the fluctuations with what we do best, which is to continuously innovate.