n terms of an overarching theme, the 2015 Oil and Gas Reality Check highlights that industry fundamentals are being called into question: declining oil prices have taken their toll on the industry; North America’s ongoing move towards energy independence continues to reverberate across world markets; OPEC is under pressure; predictions for global energy trade are evolving; and the growth of megaprojects is losing speed.
The 2014 Oil and Gas Reality Check takes an overarching view of five main topics impacting the oil and gas sector, and outlines the challenges each may present to industry participants and resource owners. While the reader may find some overlap with the topics presented in the 2013 edition of Reality Check, many of the implications and suppositions associated with this year’s themes are different, as another year has brought change to the industry fundamentals underlying each. These fundamentals include macroeconomic conditions, the supply-demand balance, regulatory constructs, cost components, commodity prices, competitive behavior, and the impact of geopolitics, which is now even more pronounced, and the related use of energy as a diplomatic tool.
This report explores the industry fundamentals of each trend - the supply, demand, macroeconomic, regulatory, cost, price and competitive behavior factors – allowing us to draw insights and describe what may unfold over the short and the long-term.
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