In another of our occasional guest blog entries, Steven Kopits of the New York office of Douglas-Westwood Associates, an energy business analyst firm, looks at the relationship between the ability of an economy to shoulder a certain oil price level and what that means for the companies that produce that commodity. If you’d like the firm’s full presentation on this issue, Steve can be reached at firstname.lastname@example.org.
As in the second quarter of the year, third quarter results for the oil majors, the international oil companies and other major listed operators, were disappointing. Some were downright awful.
Why have results for the oil companies deteriorated so markedly, and what should we expect in the future? In this article, we’ll look primarily at upstream liquids — primarily crude oil production.