Following three consecutive years of development, the oilfield providers market is about to slide into recession in 2020 if oil costs keep at their present low ranges, Rystad Vitality said on Wednesday.
In keeping with Rystad Vitality, whole world income of oilfield providers companies will decline by four % in 2020 if oil costs keep flat subsequent 12 months.
This 12 months, the oilfield providers market is predicted to develop by 2 % to US$647 billion, the power consulting and enterprise intelligence agency has estimated. But when oil costs keep at round US$60 a barrel Brent Crude, the revenues would possible drop to some US$621 billion subsequent 12 months, placing an finish to a few years of income development in a row, Rystad Vitality warns.
“Decrease oil costs name for destructive development within the service market in 2020,” Audun Martinsen, head of oilfield providers analysis at Rystad Vitality, mentioned in an replace on the sector.
“For suppliers, which means that a three-year development story will come to an finish no matter which market section you take a look at,” Martinsen added.
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