The Year Ahead

1999 will be a challenging year for the oil industry. Low oil prices and company cutbacks in budgets and people have set the scene for an uncomfortable time for the oilfield services sector. The question is how uncomfortable. First Break reports. 1999 for oil companies, contractors and suppliers of equipment and services looks as though it will see the playing out of a scenario which was sparked primarily by the collapse over a year ago of the seemingly unstoppable boom in the economies of South East Asia. The global fallout from that reverse in fortunes combined with a vulnerable oil price due to chronic over-supply has provoked a sharp reaction in the oil industry, the full impact of which has still to be measured. We are currently in the eye of a storm with major league consolidations, defensive mergers between smaller companies, spending cuts and job losses all part of the mix against the background of uncertainty over the future trend in oil price.