Quote:
Originally Posted by skudr248
Regardless of my fuel conundrum,
Where do people see the market going, and projects if the price of oil keeps staying on pace like it has done in the last few months... should O&G people be worried? I work in the O&G sector, and management has been pretty hush hush about the situation, and a friend of mine is getting really worried about it and also wondering (he's own's an IT company and he's primary contracts are with small O&G firms).
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I have a big tank and was pretty shocked at nearly $1.22 Diesel. Last time I filled up it was $1.16.
Service companies get their work on contract and should be okay until they run out. When those contracts expire and if the price of oil is still low, they should be worried when they face pressure trying to renew them or to find new business. Their clients will try to renegotiate cheaper rates or put off big expenditures or upgrades.
Most O&G companies are hedged well right now but those will run out as well so budgeting is probably already planning for that and slashing the budget for outsourced things like IT, EPCs, etc. or look for lower bidders than what they currently have.