Analyst sees bright aspects of oil downturn

DNB services stress testDNB logo. Photo Norway Today Media.

Although oil downturn has been a sharp and severe concussion for the industry, it also has its bright sides says senior analyst Eirik Larsen from DNB Markets.

At the event “Rogaland on exchanges” he listed some of the positive effects of the prolonged downturn in the oil industry, stated the newspaper Stavanger Aftenblad.
– We have received lower lending rates, increased its competitiveness by lower wage growth and a weaker kroner, better cost control, greater awareness and freed resources and knowledge.
This stimulates more innovation and new entrepreneurship, and we have seen an explosion where younger people are starting new businesses, explains Larsen.
– One year ago there were no profitable Norwegian offshore projects. But massive cost cuts and higher oil prices have changed this.
Larsen believes the outlook is somewhat brighter for the Norwegian economy, although there is still major restructuring in wait. He believes both the kroner and the dollar will strengthen this year and that the oil price will approach $ 70 a barrel by the end of the year.