How Has The Oil And Gas Industry Started So Far This Year?

How Has The Oil And Gas Industry Started So Far This Year?

The oil and gas industry can go from being consistent in being sporadic in an instant. Prices of crude oil can plummet or skyrocket overnight because so many countries have involvement in the industry. One country’s actions could have effects on the entire world. 2019 is off to a good start for most oil companies. For example, BP posted large profits for the fourth quarter of 2018; their 2018 replacement cost profit was $12.7 billion for the entirety of 2018. Bob Dudley, chief executive of BP, said: “This is a really good quarter, and, actually, the end of a great year for us.” He explained to CNBC that his company had doubled earnings and returns from 2017. As a result of his announcement, BP shares rose by 3% earlier in February. BP’s 2018 fourth-quarter was a 65 percent increase from 2017’s fourth quarter. This can partially be attributed to the acquisition of BHP’s U.S. shale properties and assets. Dudley is predicting an excellent 2019 for the oil and gas industry. He explained to CNBC that he expects oil prices to remain between $50 and $65 this year. The price of crude oil isn’t the only thing that determines a successful year for the oil industry though. The sudden drop in oil prices in December already has many companies rewriting their 2019 projections, but there are other things they must consider as well. There is currently a pipeline capacity bottleneck in the Permian Basin. However, some experts believe that this issue will be resolved by the end of the year. Despite this, profits are expected to break records within the...