Outlook: Current Oil and Gas Boom Cycle Opposite ‘in Every Way’

In an industry of cycles, here’s why the current oil and gas boom is unique and what experts at a recent industry event in Houston say operators need to figure out before the next bust.

Back in 2007 and 2008, “we were into a well-lubricated growth mode” with the expectation that prices would be “stronger for longer,” said Ian Macpherson, senior research analyst at Piper Sandler. “What we have now is the opposite of that in every way.” (Source: Hart Energy)

HOUSTON—The current oil and gas boom cycle may differ from past up markets, but the industry must improve how it manages the cycles.

A unique set of circumstances paved the way to the upmarket the industry is enjoying, but supply chain tightness and inflation are a large part of the picture. At the same time, operators are concerned about maintaining competence of rig site personnel through boom and bust cycles, speakers said during the IADC Drilling Onshore Conference and Exhibition on May 19.

The current upmarket in oil and gas is completely different than the one the industry was riding in 2007 and 2008, according to Ian Macpherson, senior research analyst at Piper Sandler. 

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Jennifer Pallanich

Jennifer Pallanich is Hart Energy's senior editor for technology. She has reported on the technology that fuels oil patch exploration, development and production for more than two decades.