How is the US – China trade war affecting oil prices in the US?
The ongoing trade war between the United States and China is keeping oil prices volatile as negotiations continue. When resolutions seem imminent, oil prices tend to climb upward. However, as tensions rise, the prices drop accordingly.
Effect of the Oil Industry on Economy
The uncertainty that the trade wars generate affects not only the oil industry but also the economy overall. As prices rise due to tariffs, consumers must pay more and therefore spend less. This causes the entire economy to slow, decreasing the demand for oil overall.
Oil Industry Response
According to EY, a global consulting organization, the oil industry must focus on long-term operational strategies to survive the volatility. Operational excellence and continuous improvement will help achieve stability.
Maintaining Pumping Systems is Top Priority
For most oil and gas companies, the top maintenance issue is keeping various pumping systems operating in good working order.
Improperly sized and installed pumps and breastplates are two common issues. Problems with pump contamination and lubrication are other issues that frequently arise. Failures of seals and gaskets can cause equipment problems as well.
Finally, a centralized computer system like a CMMS, working with mobile technology, can go a long way to improve operational excellence. Sensor technology can provide 24/7 monitoring and send alerts before major incidents occur. Preventive maintenance can be scheduled to minimize emergency work requests, saving time and money. In addition, accidents and incidents are reduced, increasing safety for all.