The Downturn Is Over, But U.S. Oil Companies Face A Huge Problem
The downturn may be over, but the oil price crash has left behind potentially long-term consequences for the oil industry. In the wake of the oil price rout that started in 2014, companies slashed expenditures, most notably in their exploration and development budgets—and this lack of investment could have severe ramifications for the oil industry.
In 2016, for a second consecutive year, 68 U.S.-listed oil companies indicated in their annual reports that their combined proved liquids reserves dropped, the EIA said in an analysis on Monday.
The 68 U.S.-listed oil companies—obliged to report proved reserves annually to the SEC—had their global crude oil and other liquids production averaging 24 million barrels per day (bpd) last year, which accounted for around 25 percent of the world’s total.
By Tsvetana Paraskova for oilprice.com