Think:Act
Oil price risk re-awakens
The conundrum posed by OPEC's excess supply
Published April 2015. Available in
Roland Berger's study discusses how OPEC's decision to abandon its role as market manager amidst the current low price environment and oversupply context creates a new and increased level of risk for upstream operators – especially marginal North American tight oil plays and select offshore projects. In addition to traditional price risk, operators now need to consider how they manage the inherent volume risk created given OPEC's ability to push additional lost cost barrels into the market. In the article we also outline a set of key questions that marginal operators should consider as they look to navigate these tumultuous waters.
The conundrum posed by OPEC's excess supply