MSI

Low Energy Prices: When Will The Crisis End?

Facebook
Twitter
LinkedIn

[vc_row][vc_column][vc_column_text]Are you like most Americans- wondering how long we will enjoy lower prices at the pump? On the flip side of low pump prices for consumers, and a surplus of crude oil, is a slow brewing economic downturn that can lead to a crisis if lows continue to extend over longer periods of time. However, as it stands, oil and gas industry economists are predicting that steady low prices will remain with us for the next few years.

In 2014, oil prices were booming at $100 a barrel. However, since January 2015 investors have consistently predicted that crude is set to hold steady under $60 a barrel through 2016, as the market works to recover from a supply glut. Why? This is because for the first time in years, energy supply has outstripped demand.

Oil production in the US has almost doubled in the last six years, according to data from the US Energy Information Administration (EIA); meaning oil that Americans would have bought has no takers. Given such a supply/demand market scenario, energy future trading doesn’t expect oil prices to hit $70 until around 2018. At the same time, economic downturn is not just visiting America, it’s a global companion; which means it may take a little longer for energy demand to surpass supply around the world.

Overall, most energy industry experts and analysts do not expect prices to rise any time soon. As such, it could take another 5 years before a barrel of oil retails at $100 again; therefore, investors will have to remain strapped in to ride the low tide until prices pick up again. As the oil price lingers at levels not seen since the depths of the financial crisis, many analysts and investors are singing a new crude song… Lower for Longer.[/vc_column_text][/vc_column][/vc_row]

Protect pipes with MSI, the world’s best pipe protection company.

Contact us today to learn how we can help you.

View More

The Role of Pipe Protection Technologies in the Mining Industry

Like the oil and gas industry, the mining industry depends on reliable and efficient piping systems to ensure the supply and delivery of various materials. Pipe protection technologies and products are essential for protecting pipes from corrosion, abrasion, impact, and other hazards that can compromise their performance and safety. Insulated Pipes in the Mining Industry

Read More »

Enhancing Water Well Piping with Advanced Pipe Protection Technologies

The water well industry plays a pivotal role in ensuring the smooth operation of cities and the availability of clean water supplies. Establishing a dependable pipe system fortified with cutting-edge pipe protection technologies is paramount to this mission. With this objective in mind, the water well industry has invested significantly in safeguarding its pipelines against

Read More »
Translate »
Scroll to Top