Oil earnings surge despite concerns

NEW YORK: Rising crude prices drove huge profits for US oil industry giants, but key figures in the sector have raised concerns about low investments in exploration and production. They warn that continued tepid oilfield investment creates the threat of a supply crunch down the road. As petroleum prices have stabilised over the last year following actions by Organization of the Petroleum Exporting Countries (OPEC), oil companies have ramped up investment in key US shale regions such as the Permian Basin in Texas. But activity outside of the US has remained sluggish, evidence of what the International Energy Agency called a “two-speed” oil market that it warns could lead to a supply crunch.

Published in The Express Tribune, April 30^th, 2017.

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