Oil Prices: Industry warned to get leaner as prices tumble again
193 views · Published 26 January 2016 · 2:09 · Indexed 23 October 2026
Channel: CGTN Africa · 2016 · News & Politics
The oil and gas industry must get leaner and smarter and learn from other industries in order to survive low prices. A new report by DNV GL, technical advisors to the oil & gas industry, says cost pressures are pushing down supply, effecting jobs and infrastructure projects. Oil prices tumbled 3 percent on Monday, dragging the dollar down, but world stocks clung onto gains in a possible sign of stabilisation after a horrendous start to the year. The report says that there is a 'substantial risk' of a slow recovery in oil that would compound the stress on firms already hurt by a 75 percent drop in prices since June 2014. Rating's agency Moody's announced on Friday that it had placed 175 oil, gas and mining companies on review for a downgrade. Commentators say that OPEC and non-OPEC producers need to work together to tackle oversupply in order to prop up oil prices.
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