Concluding Thoughts
The period from 2008 to 2009 represents a historic period in the crude oil industry. Never before has the industry witnessed the top of the commodity cycle and the bottom within two quarters. What is evident is that commercial users of fuels react to increases in commodity prices as it adversely affects their cost structures. Commercial users such as airlines and transport companies will begin to retrench as fuel costs increase.
Among oil producers, Figures 15.4 and 15.5 illustrate the industry's capital expenditure and investment plans are not as easily taken off track with the downturn in the commodity cycle. According to Figure 15.5, merger and acquisition activity slowed down, but picked back up after crude prices rebounded. ...
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