Does Halloween bring scary times for the oil industry?

It’s Halloween this weekend, and among the trick-or-treating, fancy dress and pumpkin carving, there’s time to reflect on the ‘scary’ happenings in the real world too, not least for those of us working in the oil industry, with its all-too-frequent tales of doom and gloom.

The biggest issue facing the industry at the moment is of course that the price of crude oil is so low. It has been falling for the last couple of years, as supply has increased beyond current demand, leading to a huge reduction in base cost, which impacts across the sector. This inevitably means that profits are down, leading to fewer new projects being initiated.

In addition, future oil resources are likely to become increasingly stretched, while trying to meet a continuing demand. Finding new sources of gas and oil is proving more difficult, with both logistical and political issues causing problems, as well as the aforementioned cost issues. Plus, at the same time, it is important that methods used in the industry are environmentally responsible to help combat climate change.

Continuing to source and extract oil is becoming more expensive, due to the complicated methods required to undertake new projects, and it’s also difficult to find a skilled workforce and come up with new technological solutions to meet future demands.

However, it’s easy to get caught up in these unsettling stories and this can create unease throughout the industry. But even Halloween, with its dark undertones, is really a day to remember the triumph of good over evil, battling adversity and being proactive against those things that challenge us.

And that is exactly what we at Corrotherm do – focus on the positives not the negatives, and look for new and innovative products and technologies that can help to shape and progress the future of the industry.

Even with low oil prices, there are areas within the industry that are experiencing continued success. By exploring new methods that are both cost-effective and efficient, there is a need to source and provide technologically innovative products.

With the current abundance of oil, the refineries continue to do well, as do storage companies. Corrotherm is able to supply a wide range of Nickel-alloy solutions to help meet the demand for products that offer heat- and corrosion-resistance in these high-pressure environments.

Recent reports also suggest that oil prices have now reached their all-time low and that recovery will begin throughout 2016, as demand begins to increase once again from both developed and emerging markets. Countries such as Kuwait and Qatar have been continuing to invest in energy throughout the oil crisis, so that supplies will be there ready to meet the demand.

There will be a place for oil and gas in our future, and while we have faced hard times in recent years, it’s not quite the horror story that it’s made out to be.

Find out more about Corrotherm’s range of available Grades and their Applications on the website. To discuss your project and requirements, call a member of our sales team.