INDUSTRYNEWS
Reduce oil & gas production to
restore supply-demand parity
» » THE DEMAND-SUPPLY IMBALANCE
in the oil & gas industry over the past couple
of years has had far-reaching economic and
geopolitical implications for the global market.
The strong production in the North American
and Russian markets led to an oversupply,
which triggered a price crash and economic
instability in the euro zone, geopolitical
tensions in the Middle East and Africa region,
and low demand in Asia-Pacific. Further, the
low revenue inflow compelled oil & gas majors
to roll back their capital expenditure (CAPEX)
and oilfield services.
As the oil rig count in the US almost
doubled and the production from tight oil
surged, some Organisation of Petroleum
Exporting Countries (OPEC) members were
compelled to decrease production to restore
balance to the global production. However,
they may not be able to withhold production
for an extended period as they have to produce
enough oil to break even on production costs.
Similarly, if non-OPEC producers continue to
increase production, there could be a double
dip in global oil prices.
“The participants that will survive the
unpredictable price fluctuations will be the
ones that do not depend solely on the oil
& gas industry for revenues,” said Frost &
Sullivan Energy & Environment Industry
Analyst Mahesh Radhakrishnan. “Oil
companies that are vertically integrated will be
ideally positioned to optimise their operations,
as they will have a stable downstream business,
which usually profits when oil prices are
low. National oil companies with localised
operations could focus on their mature fields
and turn them into profitable wells.”
In countries where oil & gas production is
responsible for more than 80% of the gross
domestic product, low prices will result in a
current account deficit. The worst hit segment
will be oilfield services, as oil companies will
pressure them to produce more for less.
“Even though oil prices started to increase
toward the end of 2016 and early 2017, this
situation is likely to reverse if more production
cuts are not agreed upon by both OPEC and
non-OPEC producers,” noted Radhakrishnan.
“A double dip in oil price can lead to further
drop in investments, which could impair the
economic ecosystem globally.”
RECORD TROPHY ROUT
» » GLAZERITE INSTALLERS HAVE
beaten all previous records, taking a fantastic
five out of seven national trophies – including
overall winner – at the annual Network VEKA
Awards.
Top of them all, scooping its 15th national
Network VEKA Award as Member of the
Year, as well as the £1.5million-plus category,
was Aberdeen-based Thistle Windows and
Conservatories, followed by NV founder
member Goliath Homeworld of Cannock in the
£1m-1.5m category, Shane Howells of Ledbury
in the £750k-£1m and MG Window Systems of
Northampton in £500k-£750k.
Glazerite UK Group Ltd also saw another 15
of its installer partners listed as finalists in the
national categories, including six in the two,
smaller turnover, categories where it did not have
a winner, and over half (12 out of 23) of the total
new entries and re-entries into the organisation’s
elite 100% Club.
This year’s Network VEKA Awards had been
reconfigured to replace the UK regional trophies
with seven national awards, in six categories
based on turnover plus a Member of The Year,
8 » JUN 2017 » CL EARVI E W- U K . C O M
as well as trophies for best new member in the
North and South respectively as before. The
ceremony was held at the Chesford Grange
Hotel, Warwick, where the trophies were
presented by Network VEKA brand ambassador,
snooker legend Steve Davis.
“Our installer partners have excelled
themselves yet again,” said Jason Thompson,
Director of the Glazerite UK Group Ltd, after
the presentation. “The trophies are a credit to
every one of the winners but we are also very
proud of our absolute commitment to helping
them and all of our installer partners to grow
with the best possible support that any trade
fabricator could offer.”
He added: “It is well worth noting that
these winners, just as in previous years, are
those businesses that have fully embraced the
Network Veka package and made the best use
of everything it offers – something that we at
Glazerite have always encouraged our member
installers to do. This year, the change in the
awards to a national base means all the members
are competing against their peers on a level
playing field rather than region by region.”
The team from Member of the Year winners
Thistle Windows and Conservatories, receive
the award from snooker legend Steve Davis.
(Top left) The Goliath team; (right) Shane
Howells; (bottom left) Thistle. (MG
Windows was unable to attend).
www.glazeritewindows.co.uk