Impact of oil price volatility on production and business of oil and gas companies and measures to cope with falling oil price
Oil price fluctuations will have a direct impact on the performance of oil and gas companies in different ways. In the context of oil price plunge which shows no sign of recovery, oil and gas companies have rolled out several measures, including reorganisation, slashing investments, cost savings, improving the quality of value chain management, and use of financial instruments, to cope with the falling crude oil prices. The paper outlines the impact of oil price plunge on the production and business of oil and gas companies and proposes measures to overcome the period of price fluctuations.
S.S.Chen. Do higher oil prices push the stock market into bear territory?. Energy Economics. 2010; 32(2): p. 490 - 495.
A.Dayanandan, H.Donker. Oil prices and accounting profits of oil and gas companies. International Review of Financial Analysis. 2011; 20(5): p. 252 - 257.
G.Driesprong, B.Jacobsen, B.Maat. Striking oil: Another puzzle? Journal of Financial Economics. 2008; 89(2): p. 307 - 327.
R.W.Faff, T.J.Brailsford. Oil price risk and the Australian stock market. Journal of Energy Finance and Development. 1999; 4(1): p. 69 - 87.
Iván Martén, Philip Whittaker. Killing the complexity monster in E&P: Eight critical actions for upstream oil and gas companies. Energy & Environment. January 13, 2015.
Iván Martén, Jaime Ruiz-Cabrero, Mathieu Zajdela.
The impact of low oil price on downstream oil. Energy & Environment. June 2, 2015.
Le Viet Trung, Nguyen Thi Thuy Vinh. The impact of oil prices, real effective exchange rate and infl ation on economic activity: Novel evidence from Vietnam. Petrovietnam Journal. 2011; 10: p. 67 - 79.
Mirko Rubeis. Low oil price: Opportunities, challeenges for downstream sector. 2015.
R.S.Pindyck, J.J.Rotemberg. Energy price shocks and the macroeconomic adjustment. Natural Resouces Journal. 1984; 24: p. 277 - 296.
R.H.Rasche, J.A.Tatom. The effects of the new energy regime on economic capacity, production, and prices. Federal Reserve Bank Of St. Louis. 1977.
Robert Pirog. Financial performance of the major oil companies, 2007 - 2011. CRS Report for Congress. 2012: p. 3 - 5.
WoodMackenzie. Global macro oils long - term outlook H2 2015. www.woodmac.com.
ExxonMobil. ExxonMobil earns $4.2 billion in third quarter of 2015. www.corporate.exxonmobil.com.
BP. Group results third quarter and nine months 2015. www.bp.com.
1. The Author assigns all copyright in and to the article (the Work) to the Petrovietnam Journal, including the right to publish, republish, transmit, sell and distribute the Work in whole or in part in electronic and print editions of the Journal, in all media of expression now known or later developed.
2. By this assignment of copyright to the Petrovietnam Journal, reproduction, posting, transmission, distribution or other use of the Work in whole or in part in any medium by the Author requires a full citation to the Journal, suitable in form and content as follows: title of article, authors’ names, journal title, volume, issue, year, copyright owner as specified in the Journal, DOI number. Links to the final article published on the website of the Journal are encouraged.