On one day, we have three convincing pieces of evidence that the North Sea’s 2016 losses were a temporary blip.
I’ve already reported on the massive finds west of Shetland and booming demand from Asia:
Now, we have three reports released on the same day showing the industry’s growing confidence.
First, from the USA, prices climbed to $52 per barrel as:
‘Oil investors renewed their enthusiasm as a proposal by the world’s two biggest crude producers to extend output curbs into 2018 boosted confidence that other countries will follow suit.’
Second, The #Oil17: New World Order survey suggests some recovery in 2017 and the majority of their respondents expecting greater recovery in 2018 as prices head up to $70 per barrel. This reinforces the estimates made earlier in March when ‘data and analytics firm’, McKinsey, predicted that oil prices will rebalance at $60 to $70 per barrel.
Finally, Aberdeen and Grampian Chamber of Commerce (AGCC)’s latest study of the mood of the offshore sector has found
- 52% of operators believe prices have bottomed out and will begin to rise.
- 38% of contractors, up from 12%, are more confident than they were six months ago
Though good to see, I’d put these predictions at the conservative end of those being made elsewhere, months ago: