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Most American oil executives expect oil prices to fall below $60 a barrel in 2018
Most American oil executives expect oil prices to fall below $60 a barrel in 2018
The survey of 250 executives of the production, transportation and refining the Oil Natural Gas Corp based on the investigation, many respondents predicted last year reflects commodity prices will rise, and capital expenditure budget will increase.

American oil prices fell slightly to $50.79 a barrel on Wednesday.

This year, especially in the shale oil industry executives, this year's situation is more severe, because executives are focusing on cost control and returns, and basically no longer seek commodity prices rise. The new model is encouraging shale oil producers to pay executives for the best use of capital, and a strategy aimed at maintaining low costs.

"The most important thing is that companies should focus on cost discipline and operational efficiency," says Andrew Slaughter, head of DDT's Energy Solutions Center. Andrew Slaughter.

The new reality seems to have started and waiting for a sharp rise in prices may be a long process.

Half of the top executives said they expected capital spending to decline next year, and nearly 60% predicted that the number of drilling platforms across the United States would decrease.

Shale production requires sustained investment to keep pace with the decline in production. The respondents said they expected to maintain or maintain the current level of production until 2018, but the decline in spending could prevent substantial growth in U.S. production, helping to solve the global imbalance between supply and demand.

This is in line with the plan of the 14 OPEC countries (Organization of the Petroleum Exporting Countries). The Organization predicted Wednesday that oil demand will increase in 2018, and global supply is in short supply.

For Harry Burton (Halliburton) and Beck Hughes (Baker Hughes), oilfield service provider, which is a caution sign, because DDT (Deloitte) survey respondents, about half of the expected cost of service will decline next year. Greater efficiency and new technology - long touted by industry executives as a panacea for low prices - are seen as less costly to cost.

Executives were pessimistic about the price of natural gas, and respondents said they expected natural gas prices to rise to more than $3 per million British heat units next year. On Wednesday, natural gas futures rose 1.5% to $2.93 per million British heat.

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