UK: A UK Perspective on Oil Price Volatility - Industry Impact and Legal Considerations

The dramatic decrease in the price of crude oil over the last eleven months has had ramifications across the globe. With prices currently languishing between US$60 and US$65 a barrel following the decision in November 2014 by the Organisation of Petroleum Exporting Countries (OPEC) to keep its output levels unchanged (a decision re‑affirmed in June 2015), oil companies the world over have been forced to slash investment by reducing capital expenditure and exploration spending while simultaneously implementing a raft of cost cutting and efficiency measures. This has had an immediate impact on oilfield service and supply companies who face cuts in pricing and volumes of work with resultant uncertainty as to what the future holds. Read more
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