Related Articles
Forward article link
Share PDF with colleagues

Signs of recovery, but costs won't fall much further

By Tom Nicholls Energy markets are entering a recovery phase that should continue into next year, says Claudio Materazzi, chairman of GE Nuovo Pignone, part of equipment and services supplier GE Oil & Gas. "I'm moderately optimistic," Materazzi told WGC News. But he added that any oil and gas firms hoping for a further big drop in costs are likely to be disappointed, because the recession has taken a large amount of capacity out of the sector. He said costs are unlikely to end up falling by much more than 10-15% from the peaks of mid-2008, when oil prices peaked at just below $150 a barrel. And with oil at $60-70 a barrel there will be a "fair amount" of upstream activity, which would be lik

Also in this section
As good as it gets for Opec
20 March 2017
Compliance with the Opec deal is defying the group's sceptics. How long can it last?
Bank the cash
15 March 2017
Opec can make or break whole economies. But its news is also a big deal for part-time day traders
Oil on troubled waters in Europe
6 March 2017
Demand has perked up. But politics will weigh on consumers in 2017