What is the main reason for the current downturn in the oil and gas industry?
The first answers that come to mind are: Shale oil, OPEC’s decision not to cut its oil output, high level of global oil stocks and the growth in US oil production. But these reasons are like small pieces of the big picture.
And if we were to look at the big picture, put the pieces together and define a general theme to what is happening in the oil and gas industry right now, that would be:
The downturn in the oil and gas industry is due to the growing competition between conventional and unconventional oil and gas producers over market share.
This competition will no longer be only between US shale oil producers and OPEC oil producers, new players are joining the competition in the coming years.
