WorldOil What industry leaders expect for 2016 Not since 1986 has the global upstream industry seen such a 12-month period of oil price erosion, punctuated by rapid-fire reductions in operator, vendor and contractor activity. Year of distress for debt-burdened oil firms just got even worse Just when it seemed things couldn’t get worse for debt-laden energy companies, a renewed rout in oil prices is deepening their distress. Big Oil companies back agreement to prevent climate change Ten major energy companies declared their support for a global deal to prevent climate change, but stopped short of offering unanimous backing for carbon pricing. Oil speculators most bullish in two months as OPEC calls for $80 Hedge funds slashed their bets on falling oil prices, leaving them the most bullish in two months as OPEC called for a return to $80 crude. Methane emissions threaten to undermine natural-gas offensive Discussion of methane leakage at the World Gas Conference in Paris came in the midst of an industry offensive by the biggest oil companies to promote natural gas as the cleanest fossil fuel. Low oil prices put the brakes on the global EandP train An oversupplied market spells a difficult year ahead for operators, although less so for activity outside North America. Lies, damn lies, and commodity forecasting! An $85/bbl oil price outlook is maintained for 2016, as weak oil prices, balance sheets, and significantly reduced drilling activity will create a net, non-OPEC supply decline in 2016. For North American natural gas, it is much the same story—less drilling activity makes for less gas production growth in 2016, and a much tighter market. Harsh cuts await as the oil field slips into recession EandP spending may fall below $700 billion in 2015, as budgets will be dictated by cash flow and access to capital, according to a survey of the spending plans of approximately 300 companies worldwide. What industry leaders expect for 2015

The year 2014 has been a period of not only great profitability for the global upstream industry but also a time of considerable volatility.

Robust drilling leads global activity forward

After reaching a plateau last year, worldwide Eandamp;P activity is set to resume additional growth, led by a very strong drilling market.