If last year was the year of challenging year, 2017 will be the slow road back for the oil and gas industry.
Companies are generally optimistic that oil prices will rise to a more sustainable level next year; however, they understand that even if we see an uptick in price, the industry likely won't fully recover until 2018 or beyond. The two-year downturn in the oil and gas industry may be coming to a close in 2017. An annual survey released by Deloitte, shows approximately 59% of O&G professionals believe the recovery already has begun or will begin in 2017.
While the current state of the market still leaves cost-containment initiatives a priority, executives nonetheless showed renewed confidence in an industry recovery. Those who responded pointed to expectations of rising prices, a return to increasing capital expenditures and headcount as drivers of their optimistic outlook.
In addition to the survey released by Deloitte, in a new article published by Monster, they also predict an oil boom and a rise in US oil production in 2017 focusing on the four oil and gas hotspots in the US: the Eagle Ford and Permian Basin in Texas, North Dakota's Bakkenand the DJ Basin in Colorado. With that, Goldman Sachs is also forecasting about 700 new oil rigs in 2017 that will require 120-150 employees at each rig.
Now that 2017 has arrived, it is an optimistic time for the oil and gas industry with a number of new and growing opportunities. According to the Bureau of Labor Statistics, there are currently 172,400 open oil and gas jobs and that is expected to grow throughout 2017 and into 2018.
In early 2014, many said only the strong would survive, and here we are. Many new companies, new technologies and cost efficiency have come from this downturn, but what remains, are the committed, experienced professionals, like all of us... the familiar faces that remained committed.