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Oil barrels isolated on blue sky. 3d illustration. Arranged in a row. Getty As 2018 ends, it is an excellent time to reflect on the past 12 months for the oil and gas sector and assess its prospects in 2019. “If there is one constant in energy markets, it is change, as prices shift and companies adapt,” Duane Dickson, US Oil, Gas & Chemicals leader, Deloitte says. “Although no one can truly claim to know what will happen in the next 12 months, it is useful to try to understand how the business environment might evolve.” In oil markets, the depths of the post-2014 downturn seem to be behind us. Oil prices have recovered from the $40 2016 annual average WTI (West Texas Intermediate) price low. It reached $50 in 2017, and through September 2018 it averaged just shy of $67, though many producers in Canada and the Permian saw lower prices due to widening differentials. Building on the recovery According to Dickson this recovery has been a result of various factors, including sustained success of the production restraint agreement between OPEC (the Organization of the Petroleum Exporting Countries) and non-OPEC countries in force since the beginning of 2017, […]
