Over the last 12 months we have witnessed more than a 50% correction in the oil price from over USD 100 per barrel to less than USD 50 (figure 1). Excluding the global financial crisis of 2008, this was the largest percentage fall in the price of oil since the 1980s.
This has precipitated a painful period for the whole oil sector as the exploration and production (E&P) players look to reduce costs. As consumers have benefited from lower energy prices, supplier and service companies to the oil industry have had to take on a significant proportion of the burden as the oil majors attempt to slash costs.
Source : Invesco Real Estate