After two years of low oil prices and survival-mode corporate spending, the U.S. oil industry is poised to see greater profitability in 2017. While careful evaluation of leads and prospects will still play a key role in ensuring the best use of available funds, many companies will operate in the black for the first time in a long while. According to top analysts, the expected recovery can be attributed to a few key factors:
- The deal signed by Saudi Arabia and Iran on November 30, 2016, which reduced the oil production of OPEC countries by 1.2 million barrels per day
- The failure of numerous companies over the past two years, clearing the field for those still standing in the Texas oil industry
- Increased investment in oil and gas training courses and use of advanced technology to ensure the greatest possible return on investment for oil producers
Most of the companies still operating have cleared some or all of their debts and are in a solid financial position to take advantage of this new paradigm. If things go as expected, independent gas and oil drillers in the United States will lead the industry through their careful use of financial resources as oil prices climb later this year. Some analysts have projected that oil prices could reach $60 a barrel sometime in 2017, a level long considered the tipping point at which wide-scale exploration and expansion may become financially feasible in the industry.
Increasing Productivity Is Seen as the Key to Profits
Extracting more oil while keeping overhead low has allowed many Texas companies to stay viable even during the recent industry-wide downturn in prices and profitability. One key element in the success of these companies is the adoption of petroleum economics training courses for key staff members. These programs allow greater insight into the best ways to approach various oil reserves and can provide managers and drilling crews with the information needed to make the most profitable decisions in the field. As oil prices rise, this added competitive edge can ensure the best use of funds intended for expansion in the oil fields of Texas, the United States and overseas.
Rose & Associates is a proven source for oil and gas exploration software and training for risk and resource assessment. By investing in the training programs offered by this Houston-based company, oil firms can position themselves for greater profits and increased productivity in the improving economic climate. To learn more about how advanced training can help your oil firm take advantage of rising prices this year, call us at 713-528-8422. We look forward to providing you with the best training and software solutions in the petrochemical industry.