While economic slowdowns in areas like China and the Eurozone may have decreased oil demand, lowered figures may be offset by domestic increases in industries such as manufacturing. According to a number of financial insiders, China's economic turmoil is forcing many companies to bring manufacturing back to domestic shores, in turn generating future oil needs.
According to a report from CNBC, the tug-of-war between domestic and international numbers is having a major effect on oil prices. On Monday, the situation in Europe and Asia overshadowed U.S. gains and the price of brent crude fell. But, while this may be a short-term result, many analysts believe that the regulatory changes being made overseas will eventually bring up global oil demand.
Tim Evans, energy analyst at Citi Futures Perspective, said that despite the current weakened physical demand, the market should eventually hit a sustainable price as the need for oil begins to rise.
"This is a market that has plenty of excuses for moving higher," Evans said.
Regardless of the current situation, oilfield producers must always be prepared for fluctuations in both cost and demand. If international economic growth eventually comes to pass and prices increase, any failures by the oil companies to deliver adequate volume in a timely manner would be unacceptable. Therefore, it is crucial for producers to equip themselves with proper oilfield technology to build efficiency into operations and improve extraction speeds.
Using solutions such as artificial lift is one way companies can ensure that they produce oil when it is needed. Companies interested in acquiring the tool should contact an oilfield technologies provider. These professionals can help businesses find the best solutions to fit their needs.