According to the survey, the bank observes a drop in business operations within the oil and gas industry during the third quarter, a reduction in oil output, and increasing negativity. Businesses indicate increasing expenses but relatively stable workforce requirements.
Respondents, on average, anticipate that the WTI crude oil price will hit $63 per barrel by the conclusion of 2025, in contrast to the existing price of $63.80 per barrel. Replies varied between $50 and $80 for each barrel. Nonetheless, participants anticipate that the cost of WTI oil will increase to $69 per barrel in two years and to $77 per barrel in five years.
Participants in the survey expect that the Henry Hub natural gas price will rise to $3.30 per MMBtu by the conclusion of 2025, increasing from the present $2.99 per MMBtu. In two years, the cost is anticipated to increase to $3.94 per MMBtu and to $4.50 per MMBtu in five years.
A majority of executives indicate that they have had to delay investment decisions because of heightened uncertainty regarding oil prices and/or production expenses: 42% of respondents experienced a slight postponement in investment choices, while 36% reported a considerable postponement.
source: reuters.com
