The massive decline in oil prices since July 2014 is not only impacting the markets, but it is also a major blow for oil-dependent countries, many of which are struggling to present 2016 budgets and looking for ways to derive growth from non-oil sectors such as infrastructure, agribusiness and services. While the potential is there, it will take time to see yield from these efforts because of the unnatural focus placed on commodity-driven growth during the boom as other areas were largely ignored.
“The energy industry, like other industries, is cyclical and will eventually recover. Once the world’s economies regain their footing and growth trajectories, the demand for oil, and the price, will rise,” Mark Friedgan, COO of Eligo Energy explained. “At that point, the shale producers can resume investing in technology, driving their break-even prices lower and increasing their competitiveness. The energy space will be very interesting in the coming years and will definitely present some opportunities for savvy players.”
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