CWT: Higher Oil Prices, Trade Tensions Fuel Pricing for Energy, Resources and Marine Sector
Companies in the Energy, Resources and Marine sectors (ERM) are
rebounding as oil and commodity prices continue to rise and global GDP
growth is projected to increase 3.4% in 2019. Travel activity is also on
the up, with air prices expected to climb 2.6% globally next year,
according to the 2019
Energy, Resources & Marine Travel Forecast, published today.
“After a few challenging years, we saw a slow but steady recovery in
2018,” said Raphaël Pasdeloup, Senior Vice President, CWT Energy,
Resources & Marine. “We expect continued growth in energy, metals and
minerals commodities, as well as shipping. But geopolitical tensions
could throw this positive trajectory off-course.”
“While these factors make forecasting difficult, we project air and
hotel prices to rise nearly everywhere in the sector in 2019,” said
Pasdeloup.
ERM industry activity and investments are closely correlated with the
price of oil and commodities. Tight crude supplies, exacerbated by US
sanctions against Iran, are projected to contribute to higher prices.
Meanwhile, US exploration and production budgets increased to $132.5
billion this year, up from only $88.2 billion in 2016.
Total world rig count is at the highest level since 2015, when it
numbered 2,337 before plunging to 1,593 in 2016. The latest Baker
Hughes Rig Count reports a healthy 2,273 rigs in operation.
Growth in the marine sector is expected to be fairly flat, but container
transport vessels are seeing an increase in work as the overall economy
picks up. However, China, a key hub of container transport, is now
seeing growth moderating, contributing to the slower outlook for the
sector. Meanwhile, escalating trade tensions are a source of concern.
Download
full report with price forecasts.
About
CWT Energy, Resources & Marine
We provide specialist travel management solutions for many of the
world's leading companies in the oil & gas, mining, offshore, marine and
alternative energies industries. With our rich heritage and experience,
we help our clients find the right solutions for their complex travel
needs, often in some of the least accessible places on earth. We are
proud to be part of Carlson Wagonlit Travel – a global leader in travel,
hotel booking and meetings & events.
View source version on businesswire.com: https://www.businesswire.com/news/home/20180912005038/en/
Copyright Business Wire 2018
Source: Business Wire
(September 12, 2018 - 3:00 AM EDT)
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