ENERGY | GIQ London Energy Industry Survey: Oil to Average $50s/bl in 2017

ENERGY | GIQ London Energy Industry Survey: Oil to Average $50s/bl in 2017


ENERGY | GIQ London Energy Industry Survey: Oil to Average $50s/bl in 2017


Dubai, UAE – February 26, 2017 (Gulf Intelligence) - Gulf Arab national oil companies (NOCs) should transform into competitive international oil companies (IOCs) like their European and Asian peers BP, Statoil and Petronas have done, a Gulf Intelligence survey conducted in London with 100 energy industry executives, says. 73% of the audience held this opinion and when asked what the dominant industry partnership model would be by 2025, 63% of executives chose NOCIOC, while 31% said it would be predominantly between NOCs. Only 6% voted for the IOC-IOC option.

The dramatic 70% decline in oil prices since mid-2014 has spurred significant restructuring activity in the past year amongst some NOCs in the region – geared to improving commercial and operational efficiencies and altering the traditional reliance on IOC financial and technical expertise.

Asked where they saw Brent crude oil prices averaging in 2017, 72% said in the $50s per barrel (bbl) range; 18% were more bullish, seeing it average in the $60s/bbl, while 10% were more conservative, predicting that as it did in 2016, Brent would average in the $40s/bbl.

63% of the GIQ survey audience were of the opinion that absolute Brent prices would not dip below $40/bbl while 20% were somewhat less optimistic choosing $30/bbl as the floor for 2017. Meanwhile, 5% thought it could touch $20/bbl or below.

Brent crude oil prices have averaged in the $50s/bbl so far this year and were $56/bbl at the market close on Friday.

75% of the executives in the room said that the OPEC – non-OPEC Vienna 1.5 million b/d production cut agreement which commenced in January, was a result of producers feeling unsustainable economic pressure from consistently lower oil revenues, while the remaining 25% believed that the market share strategy deployed by OPEC for the past two years had succeeded in its objective. Meanwhile, 83% of the audience expect the current 6-month agreement to be extended beyond June of this year.

 “NOCs In Transformation – Destination?”


ENERGY | GIQ London Energy Industry Survey: Oil to Average $50s/bl in 2017

ENERGY | GIQ London Energy Industry Survey: Oil to Average $50s/bl in 2017

ENERGY | GIQ London Energy Industry Survey: Oil to Average $50s/bl in 2017

ENERGY | GIQ London Energy Industry Survey: Oil to Average $50s/bl in 2017

ENERGY | GIQ London Energy Industry Survey: Oil to Average $50s/bl in 2017

ENERGY | GIQ London Energy Industry Survey: Oil to Average $50s/bl in 2017


About Gulf Intelligence

Gulf Intelligence is a UAE-based strategic communications consultancy that facilitates critical Knowledge Exchange and Networking between stakeholders operating across the South-South Corridor – connecting Government Related Entities in the Middle East and their International Partners trading across this New Silk-Road passageway from Asia to Africa.
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