Declines are happening but they should be short-lived

The short-term outlook for the drilling industry has changed dramatically. Lower oil prices have led to exploratory wells being deferred or cancelled, development projects being delayed and layoffs from both oil and service companies. Last year seemed to be never so good for the industry, but there is now huge uncertainty and, in some quarters, despondency. However, the downturn will be short-lived and will serve only to make growth even sharper in subsequent years, writes Dr Michael R Smith, Chief Executive, Energyfiles.