Leaders in the oil and gas industry believe the industry downturn is slowly ending but that it may be getting worse for pipeline companies, according to a survey conducted by consulting firm Deloitte.
According to the survey, two-thirds of industry professionals believe the market recovery is beginning as they expect oil prices, capital expenditures, and hiring rates to increase over the next year.
Some survey takers, however, said they expect the downturn to negatively affect pipeline companies as significant cuts to exploration and production start to wear on them.
Over the last several months the industry has seen pipeline contract renegotiations and other challenges as upstream companies experience trouble in the downturn.
Several pipeline companies have filed for loans, sold shale holdings, or consolidated with other companies as a way to survive in the market downturn, affirming two-thirds of the survey takers’ expectations that more company mergers will occur within the next few years.