Winners and Losers from Declining Oil Prices

Thanks to relatively new technologies, such as horizontal drilling and hydraulic fracturing, companies operating in the US shale formations have brought on over one million barrels per day of incremental oil to global supply over the last year. OPEC's decision not to play the role of "swing producer" meant that the market for oil would be oversupplied by slightly greater than 1 percent relative to global demand. As a result, oil prices have declined over 50 percent since June, sending shockwaves throughout the oil & gas industry as companies struggle to realign their operations in the face of the precipitous decline in West Texas Intermediate (WTI) and Brent crude oil prices.

After fielding a number of client inquiries regarding the potential impact declining prices will have on major industrial markets, ARC analysts con-ducted research to gain a better perspective on the outlook for the next 12 to 24 months. This report will highlight this research as well as provide perspectives based on ARC's ongoing monitoring and analysis of major process industries, such as oil & gas, refining, chemicals, automotive, electric power generation, transportation, and others.

ARC Advisory Group clients can view the complete report at this Link.

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Keywords: West Texas Intermediate, Brent, Automation, Oil & Gas, Upstream, Mid-stream, Downstream, Automotive, Transportation, Refining, World Bank, ARC Advisory Group.