Much of the oil and gas industry has survived an especially tough few years with weak demand and low prices. It has been difficult to make strategic decisions and plan for the future. Only now is the sector beginning to emerge from its upheaval.
For instance, although prices appear to be recovering Brent crude was up around 90 percent in 2016 to just over US$50 per barrel they are still well below $115 per barrel, the post-recession high-water mark reached in March 2011. As a result, even as companies begin to view new investments in resource development as more attractive, the upstream oil and gas sector must move gingerly. Continuing price improvements will probably be slow, and supply may be constrained by the cutbacks in reserve development projects over the last few years.