Most experts in the oil and gas industry agree that 2016 was a nail biter of a year and one that they do not want to repeat any time soon. Fortunately, it seems, they will not have to this year. Although no one expects the oil and gas sector to magically spring back in 2017, forecasters are calling 2017 the year of “slow and steady” in the march toward recovery. A Deloitte survey taken toward the end of 2016 reveals that just under 60% of oil and gas sector respondents feel that the oil and gas outlook for 2017 will be one of recovery for the industry.

US Political Effect on Global Oil and Gas

It certainly seems like the political powers of the US are planning to do what they can to assist the rebound of the industry, starting with the oil and gas industry in the US. With the new Trump-led, Republican-heavy administration, the United States government has been dubbed “energy-friendly” by Jay Hatfield, President of Infrastructure Capital Advisors in remarks to US News.

In fact, Trump has gathered a veritable who’s who when it comes to pro-energy mindshare, including Secretary of State Rex Tillerson, CEO of Exxon Mobil Corporation., Oklahoma Attorney General Scott Pruitt leading the Environmental Protection Agency, former Texas Governor Rick Perry as Energy Secretary and Montana Representative Ryan Zinke as Secretary of the Interior.

The Deloitte survey of oil and gas execs attests that many have their eyes on US policy, with 38% citing US tax and policy decisions as one item that would be likely to impact their company.

Pros for Oil and Gas

Items that have analysts looking up include the fact that supply and demand is on the path to equalizing and that global demand remains steady and slightly growing. OPEC has committed to production cuts, and oil companies are getting much better at operational efficiencies. Additionally, US LNG exports are seeing growth opportunities.

Challenges for Oil and Gas

Developments that are still cause for some hand wringing include the fact that more US oil rigs are back online, which could ramp production. Indicators are that Iran’s production might swell as well, and there seems to be an overall reluctance for oil and gas executives to engage in long-term capital projects.

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