Carlson Wagonlit Travel12-Sep-2018 / 08:00 GMT/BST
Higher Oil Prices, Trade Tensions Fuel Pricing for Energy, Resources and Marine Sector
Houston, 12 September, 2018: 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.Media contact: Alistair Hammond Global Director of Media Relations T: +44 203 353 1454 / M: +44 771 773 email@example.comAbout 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.
Authors: EQS Asia Business News