A drop in oil prices is good economic news if you are a consumer of gasoline, of course. But when it comes to the secondary impacts, it’s a different story.
Data analytics firm Calcbench has come up with an estimate of the top 20 oil services companies’ fourth quarter 2015 revenues, using the relationship between the spot price of oil and those firms’ reported revenues over the past 15 quarters. The prediction for this quarter is positively dire, showing a 33% decline in the top 20 companies’ projections, from $274 billion to $182 billion. Exxon Mobil, for example, is predicted to see revenues fall 31%, from $83 billion to $57 billion.
If Calcbench is correct, we will see further cost cuts, job losses, and major disruptions in the oil industry in the near future. Be prepared.
