Insight

Global oil & gas industry outlook for 2017: the three Rs—restructurings, realignment, and some rebuilding

February 2017
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Optimism appears to be rising for a rebound in oil prices in 2017, yet the industry will continue facing challenges, thanks to weak demand and lingering fallout from the past several years.

At a glance:

  1. Most oil & gas players have smartly used the past two years to reduce costs, but there is more work to do.
  2. We believe this year will be characterized by three Rs: continue restructuring, more realignment through M&A, and finally, for some, a year of rebuilding.
  3. Upstream companies should plan conservatively on oil prices and accept nothing less than a high-performing organization.
  4. Oilfield services and equipment companies should cautiously approach market share gains and proactively raise capital.
  5. Downstream companies should take a page out of the upstream book and focus on more aggressive cost-optimization strategies.

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