ACCENTURE | The oil and gas (O&G) industry is no stranger to supply and demand shocks, having faced more than a dozen such jolts over the course of the past four decades.
Most of the supply side shocks, excluding 2014’s bump, were the result of sudden supply pullbacks in reaction to geopolitical unrest. On average, the impact these market-tightening shocks made lasted anywhere between one and six months. Demand-side shocks were largely due to macroeconomic contraction and have been closely connected to larger volatile economic cycles—in terms of size and duration.
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