As the new year approaches, experts in a number of industries are taking this time to look ahead to 2013 and predict the immediate future. As economic turmoil continues to dominate global headlines, financial professionals are looking at the new year as an opportunity for the climate to improve, even as the fiscal cliff deadline looms large these next few days.
Richard Hunter, the head of UK equities at asset management firm Hargreaves Lansdown, wrote a recent column previewing the stock market in 2013 and is proceeding with optimism. Hunter suggests that improvements have been made in 2012 and sees no reason why things can't continue to get better in 2013.
If they do, Hunter suggested, the oil market should continue to grow, as a stronger economy typically results in greater energy demand. While he made note of the fact that precarious political situations could endanger the oil industry, producers have been making necessary improvements to daily operations to build efficiency and better supply global demands.
"In theory, any returns to strong economic growth should drive the demand for oil, thus pushing up the price," Hunter wrote. "In addition, new technologies have enabled oil companies to ramp up production at a time when there had been fears 'peak oil' had been reached. The concerns within the industry are about what is happening above ground [in the form of geopolitical tensions] as opposed to underground."
It is important for oilfield producers to be cognizant of any changes in oil demand, whether they are fueled by economic conditions or not. Investing in proper oilfield equipment will help professionals in the oil industry prepare themselves for any challenges in the new year.