Current Oil & Gas Crises.
Mostafa Fouad, the global Director of BGS Energy Services has presented the company in the last SPE- PICS event held on the 24th of Nov. at the American University in Cairo covering current Oil& Gas Crises. During his speech, Mr. Fouad did talk about reasons behind the current crisis by demonstrating the historical background over the last 50 years and the reasons behind each Crisis took place during this lengthy period.
Starting with the Yom Kippur War Oil Embargo toke place in 1973, the world started to experience how political conflicts could massively impact Oil Prices. Iranian Revolution, Iraq/ Iran war in the 1979s& 1980s were the second event where Oil Prices went up to sky impacted by the fear of putting Iraq/ Iran and probably Saudi oil supply at risk. Starting 2003, OPEC decided to take several actions to cut the oil supply as part of its continues effort to control deteriorated prices supported simultaneously by events like second Iraq war, PDVSA Strike, Asian Growth and finally weaker Dollar, prices started to go up massively before it falls down again with the 2008 great recession. Early 2011 with the Arab spring and the improvement in market demand, prices started to pick up again for 3-4 years but early 2015, several political and economic reasons have negatively impacted the above 150 US$ oil prices and brought it down to nearly 27 US$ a barrel range within couple of weeks impacting all major producers and service providers. It is obvious that the Oil & Gas industry has changed forever.