Commercial

New Report Sees Low Oil Prices Through 2020

By Staff Writer | November 10, 2015

Offshore

“Lower for longer” has been the in-vogue catchphrase for the oil industry since about August. Leaders like Goldman Sachs and BP CEO Bob Dudley have used it. Offshore operators have embraced it, with the latest Era Group and Bristow Group financial reports focusing on the assumption that per-barrel oil prices will recover after 2017. For reference, $65 a barrel is used as the threshold by forecasters, including those projecting demand for rotorcraft manufacturers. Above that price, it is assumed, energy companies will increase exploration and production (which would increase demand for helicopter services and new aircraft). Below it, they cut back. Oil has stayed well below that price throughout this year. Now the International Energy Agency says oil prices may not recover until later in the decade. Its World Energy Outlook 2015 report, released today, saw a tightening balance of oil supply and demand leading “to a price around $80 per barrel by 2020.” 

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