As the third continuous year of increasing demand for oil heralds a prosperous landscape for the industry, the major oil companies worldwide are shifting their focus to new oilfields. These new ventures are being strategically pursued to ensure profitability, even if oil prices were to fall to a significantly lower figure of around $30 per barrel. This signifies a significant shift in the industry's outlook and strategic preparation for potential market fluctuations.
1. The major oil companies are shifting their focus to new oilfields as the third year of increasing demand for oil provides a prosperous outlook for the industry.
2. To ensure profitability, these new ventures are being pursued with a strategy that would stand firm even if oil prices fall to around $30 per barrel.
3. This massive shift in industry strategy is due to the unpredictable fluctuations in global oil prices, which have been highly volatile in recent years.
4. Leveraging the constant increase in demand, industry giants are exploring oilfields that would remain profitable even if the oil price drops dramatically.
5. The strategy aims to mitigate risks associated with abrupt changes in oil prices by diversifying investments and ensuring a steady flow of revenue, despite potential market downturns.
According to the International Energy Agency, global oil demand is expected to reach 99.3 million barrels per day in 2023.
The oil majors' focus on these new oilfields marks a significant shift in the industry strategy. This shift has largely been triggered by the unpredictability of global oil prices, which have proven to be highly volatile in recent years. Leveraging the third consecutive year of increasing demand, they are striving to explore oilfields that would remain profitable even if the oil price plummets to as low as $30 per barrel. This move essentially exemplifies their effort to mitigate risks associated with abrupt fluctuations in oil prices by diversifying their investments and ensuring a steady flow of revenue, despite the potential downturns in the market.