“Global Market—An Unprecedented Market”
In the October 1, 2009 issue of Petroleum Review, Booz & Company Principal Robert Oushoorn (Europe), and Partners Otto Waterlander (Europe), Thomas Schlaak (Europe), and George Sarraf (Middle East), wrote that executives of international gas markets who best understand the market’s new dynamics will emerge on top. “All players along the value chain, suppliers, buyers and infrastructure companies need to carefully assess the current new dynamics,” the Booz & Company authors wrote in a bylined piece. “Those players who fully understand the implications of the current market conditions and the opportunities they may offer can emerge from this crisis stronger than they went into it.” Prompting the new reality was the authors’ prediction that the economic recession combined with the completion of current gas export infrastructure projects could significantly reduce demand and lead to an oversupply in the market of up to 15 percent until well into the next decade. “So market change depend on supply decisions made by large National Oil Companies (NOCs),” they wrote. “Also, developments in the production of unconventional gas in the U.S. based on the recent huge reserves discoveries will play a crucial role, with a potentially shifting position of the U.S. in the global supply/demand balance adding to the situation of over-supply.”