Is the next downturn close?
While I don’t like to be the bearer of bad tidings I read a rather disturbing article today regarding the state of the seismic industry. The author, David Bamford, holds a PhD in geophysics and has been involved in the technical and exploration fields for 23 years and has a rather startling prediction.
David examines the state of the industry and the cause of the last big downturn between 1990 and 2002 along with the advances in the methods and predicts that the next downturn may start as early as 2007. It may just be that we need to start tightening our belts sooner than we had hoped.
In my opinion the demand in the heavily populated regions of Asia like China and India continues to be strong and the biggest worry that we have is a US recession with the associated reduction in demand for products produced in these places. David, however, points out that The vast bulk of oil production is still in the same hands that it was during the last slump and exploration in those places has not increased that much. Most of the extra exploration activity that we are seeing is in the rest of the world.
The article, entitled “House of Cards” is in the February 07 edition of OilVoice’s industry features page and is in PDF format so you will need the Acrobat reader. The link below will take you to the OilVoice page.
OilVoice.com | Oil Industry Features
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