SOURCE: Industrial Info Resources

Industrial Info Resources

November 03, 2014 06:00 ET

Oil Prices Not a Near-Term Concern for Project Spending, an Industrial Info News Alert

SUGAR LAND, TX--(Marketwired - Nov 3, 2014) - Researched by Industrial Info Resources (Sugar Land, Texas) -- A glut of oil on the global market at a time of decreasing demand has sent crude prices tumbling over the past few months. In October, West Texas Intermediate crude dipped below $80 per barrel for the first time since June 2012, while Brent crude futures dipped into the low $80s, trading at near four-year lows set in November 2010.

The question now looms: "How low is too low?" When will the price of oil dip enough to slow production and halt further exploration and drilling efforts? Industrial Info's industry experts see very limited effects in the near-term for crude oil production and associated project activity while oil remains in the $80/barrel range.

"It's important to keep in mind that the highest amount of industrial spending in the U.S. is centered around natural gas -- not oil," says Chris Paschall, Industrial Info's manager of Oil & Gas Industry Research. "We're developing lots of fractionation capacity for NGL [natural gas liquids] production, as well as all of the massive LNG projects. In addition, the Chemicals Industry is in the middle of a massive build-out of plants that will use natural gas feedstock for products like ethylene and methanol. An increase in domestic natural gas prices would lead to a much bigger slowdown in infrastructure development than low oil prices. Fortunately, these seem like they will be holding steady for awhile."

Check out the latest edition of Industrial Info's NavigatIIR online newsletter to learn more about the anticipated results of falling oil prices, as well as the latest industrial spending trends for the U.S., Canada and Mexico.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and ten international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. To contact an office in your area, visit the "Contact Us" page.

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