There’s a new world order to talk about at the Davos of Energy | GulfNews.com

There’s a new world order to talk about at the Davos of Energy | GulfNews.com:

"The Saudis may go public, Opec’s in disarray, the US is suddenly a global exporter, and shale drillers are seeking lifelines from investors as banks abandon them.

Welcome to oil’s new world order, full of stresses, strains and fractures. For leaders gathering in Houston this week at the IHS CERAWeek conference — often dubbed the Davos of the energy industry — a key question is: what will break first? Will it be the balance sheets of big US shale companies? The treasuries of Venezuela and Nigeria? The resolve of Saudi Arabia, whose recent deal with Russia to freeze output levels offered the first hint of a rethink?

After watching prices crash through floor after floor in the worst slump for a generation, the industry is eager for answers. Insiders say it’s not too hard to visualise what markets might look like after the storm — say five years down the line, when today’s cost-cutting creates a supply vacuum that will push up prices. But it’s what happens in the meantime that’s got them scratching their heads."



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