AUSTIN, Texas, May 6, 2020 /PRNewswire/ -- Enverus, the leading oil & gas SaaS and data analytics company, has released its latest FundamentalEdge report that presents the company's updated view of the oil and natural gas markets, with a special focus on the remainder of 2020 and forecasts for the next five years.
"There have been numerous ideas proposed to try and correct the unprecedented drop in oil and gas prices created by a global supply imbalance, Saudi-Russian price spat, coronavirus pandemic, and resulting demand destruction," said Bernadette Johnson, vice president of Strategic Analytics at Enverus. "The recent OPEC+ agreement to cut 9.7 MMBbl/d in May and June for the near term is too little, too late, however. The answer to understanding the path to recovery has been there all along—fundamental economics and supply/demand," said Johnson.
"It's also important to note that any oversight-led cuts may cause a broad range of unintended consequences because the oil market is very complex. Different basins and fields produce very different qualities of crude and each refined product has its own market that is impacted differently right now," added Johnson.
"In this environment, it is hard for shale producers to get any more efficient than they already are, and so the market and common responses to a price crisis are all well underway. Shale producers are nimble—they can add rigs quickly and bring a well online in three months or less when the time is right. Yes, there will still be more painful announcements, but we are seeing the bottom. The world is still highly reliant on hydrocarbons and that isn't about to change in a six-week period," said Johnson.
Members of the media may schedule an interview with one of Enverus' expert analysts or request a preview of the full report, COVID-19: Oil and Gas Fundamentals.
Visit enverus.com/managing-the-energy-market to stay informed of the latest market conditions.
Through its SaaS platform, Enverus is the leading data, software and insights company providing innovative technologies and predictive/prescriptive analytics, empowering customers to navigate the future. Enverus' solutions deliver value to more than 6,000 customers in 50 countries across the upstream, midstream and downstream sectors, enabling the industry to be more collaborative, efficient and competitive. Enverus is a portfolio company of Genstar Capital. Creating the future of energy together. Learn more at www.enverus.com.