Oil Prices Crash 25% As Oil War Begins
We have seen many news about oil war because oil prices crash 25%. So what will happen if the price is lower than 30USDbbl even 20USD/bbl for oil and gas industrial?
In fact , there are upstream and downstream for oil and gas. It is a good news for downstream, but it is a very bad news for upstream ,and it is very bad for the oil company’s exploration and production , and the bad issue is that oil companies need increase more production to cover the cost of exploration and production, so they should save the cost and cut a lot of investment. in this way, many projects will stop , like seismic exploration, drilling ,mud logging ,well logging and all kind of borehole well services will decrease and stop .In this way, many oilfiled companies will bankrupt if the price is less than 20USD/bbl.
So what we can do under situation?
1. focus on paint point of oil and gas production ,oil and gas company will never remove the investment of production if their cost is less than 10-20 USD/bbl. And they need some new technologies and solutions which can save cost and improve production.
2.develop better solutions for oil and gas industry.
3.Put the oil and gas’s solutions to other new engergy application. We can use some normal oil and gas solutions to solve some problems in new energy , such as geothermal , water well and etc.
pls contact us if you have more good ideas.