OPEC – the Organization of Petroleum Exporting Countries – met today in Vienna, Austria. The likely No. 1 item on members' agenda is the recent decline of – and volatility in – oil prices.
Saudi Arabia proposed OPEC and its allies, like Russia, cut crude oil production by a million barrels a day. Russia said it'll go along with production cuts. But Saudi Arabia's suggestion is less than some think is needed to address an oversupply of oil, and it led to crude oil prices to fall – again.
The recent decline of – and volatility in – oil prices has led to some hand-wringing as we appear headed for another surplus in oil in early 2019.
So, what does this mean for the oil and gas industry here in Houston? Which sectors could benefit, and which could be hurt? After dramatically low prices a few years ago, are Greater Houston oil producers and related businesses better prepared for another round of lower prices?