Oil and Gas Forecast

Oil and Gas Forecast
In the USA...Increasingly tough regulatory environment domestically, rising prices that increase domestic exploration and economic O&G recovery with added taxes and environmental costs on domestic exploration and production. EPA and other agencies stepping in to the regulatory picture as agencies see increased funding and growth. All this should favor regulator driven O/G service and equipment sales.

Globally... devalued dollar, tightened markets for oil, and more speculation should drive prices up. International LNG transports and ports allow for increased participation in growing domestic US natural gas markets.

In the US, natural gas markets should expand to take advantage lower transportation cost involved in use of local discoveries/production in Texas, Louisiana, Arkansas, Pennsylvania and other unconventional gas fields. Increased demand for pipelines out of these fields.

Marketing Challenges:
Can NG avoid fossil fuel regulatory prejudice, the big PR challenge NOW? EPA is already moving to participate in greater regulation of production and exploration based on air and water quality regardless of historical findings to the contrary.

Challenge from renewables as they are given tax advantages and O/G is penalized. The question is... how fast can they move and how much market can they grab before the political climate changes in favor of greater balance.

Can the "fossil fuels factor" in global warming be debunked in the public and political mind with the scientific evidence of the continuing history of climatic cycles. The most "Inconvenient Truth" may be the real facts of climatic cycles and our insignificance in the climate change formula.

Critics of O/G continue to leverage public and political opinion using scarcity, environmental damage and now climate change to dismantle the O/G industry in favor of "alternative energy". With mainstream media on-board, we face a massive industry challenge to tell the true story in a million different ways. This is a challenge that has to be met by every O/G industry participant in every press release, interview, and piece of literature.

Don Lokke CEO
Lokke Advertising
Oil and Gas Marketing Specialists
www.LokkeAdvertising.com