United Kingdom

White Paper: Black silver

 

Examining the implications of a low oil price environment on the energy, aviation and power sectors

The price of oil has fallen precipitously in recent months, down from a USD 100 norm, to around USD 50. This is having significant ramifications for the global economy and the energy sector in particular.

This white paper examines its potential to spark a round of M&A in the energy sector, provide a lift to the airline industry, reinforce the case for renewables in the power industry and heighten political instability in oil producing states in the Commonwealth of Independent States, the Middle East and North Africa.

Drawing on insights from Aon’s London team within the Global Broking Centre, the paper provides analysis that will enable interested parties to better understand the implications of a changed oil price environment.

Download Black silver

Key findings from Aon’s white paper on oil include:

One quarter of global oil rigs are idle as of February 2015

A rise in M&A within the energy sector is predicted, with frackers the most likely targets

One exploratory drilling firm has reduced its operations from 2,000 exploratory wells in 2014, down to a proposed 200 in 2015 as a result of conditions.

American Airlines estimates a USD 5 billion uptick in 2015 as a result of lower oil prices.

95% of Venezuela’s exports are dependent on oil.

Global oil production is hovering around 92 billion barrels a day. Global demand is around 90 billion barrels a day.