Deloitte’s 2015 Oil and Gas Reality Check report suggests that recent price plunges are unlikely to impact the long-term viability of oil and gas, however, current fluctuations may speed up a number of industry trends.
These key trends include shifts in supply-demand fundamentals; new trading patterns emerging; the Organisation of the Petroleum Exporting Countries (OPEC) coming under pressure; LNG becoming a buyer’s market; predictions for global energy trade continuing to evolve; and, the growth of megaprojects is losing speed.
Deloitte Australia Consulting partner, and national oil and gas leader, Mike Lynn, said the report presents the findings of a global team of Deloitte oil and gas experts, supplemented by expert perspectives from clients and industry executives.
“The global oil and gas industry has been built on long-term investments, and has successfully emerged from cyclical downturns in the past,” Mr Lynn said.
“Another year has certainly brought further changes to industry fundamentals, including expansion and contraction on a number of fronts.”
The report adds that the Australian LNG sector, in particular, faces a number of challenges as it becomes a new and significant global gas exporter.
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