The 2018 recovery in commodity prices and cash flows has been excellent news for the world. The
challenge now will likely be to translate that into sustainable profitability and returns. The downturn
saw tremendous gains in cost containment, capital high-grading, and operating efficiency. Will
this discipline be maintained? Some costs will inevitably rise, not only to revive margins within the
service sector, but also thanks to rising materials costs. The question is whether or not acceptable returns. Don’t forget the numbers—can returns and profitability demonstrate value to investors?
It can be generated through the commodity price cycle. Learnings as well as from the downturn shouldn’t be forgotten, and continuous improvement in technologies, as well as operating practices, will continue, as they always have. Industry players could specialize as well as in two key lessons: adopting a disciplined
approach to capital investment decisions and leveraging digital technologies as well as to realize higher capital productivity.
Storage Facilities And LNG Plants
It’s not almost supply or markets as well as infrastructure matters. Building and expanding pipelines, processing facilities, import and export terminals, storage facilities, and LNG plants may be vital but often underappreciated a part of the worth chain.
Crude oil price discounts have sometimes topped $20 within the Permian Basin4
and $50 in Western
Canada because pipeline build-out lagged wellhead activity. The exceptional growth in natural
gas production within the Marcellus Basin has often outstripped pipeline capacity as well as depressing prices.
For producers. Planning, permitting, and constructing infrastructure as well as seems to be getting
longer and more complex and is more often litigated by opposing groups. There are major
infrastructure projects moving forward, but delays are often costly. nobody in oil, gas, or chemical
development can afford to ignore how this plays out, impacting price spreads and physical
capacity to maneuver products. In this world of uncertainty, we are watching five key trends
Natural gas—Not Forgotten
The abundance of moderately priced gas in North America, like that from the Marcellus and
Permian Basins, doesn’t get the maximum amount attention because of the oil sector. And yet it’s enabling every material