Each year the consultants at Deloitte conduct a survey of oil and gas industry professionals. Last year the survey showed o&g execs believed we were already in the midst of a recovery for the industry (see Deloitte’s 2016 Survey: O&G has Finally Turned the Corner). What about this year’s survey? Deloitte reports the pendulum has swung back–from optimism back to full-blown caution. They are cautious about prices for oil and gas over the next few years, and cautious about how much activity we’ll see in new drilling (spending will be lower). With respect to the price of gas, a majority of execs believe the price of natural gas at Henry Hub will remain between $2.50–$3 per million British thermal units (mmbtu) in 2017, with slight price increase next year, and eventually $3.50/mmbtu by 2020. Most execs think there will be a 10% decrease in drilling budgets in 2018. Here’s the report, hot off the presses…
