Five months ago a lot of American oil was going to Europe. OPEC decided to push back on this in an effort to balance the oil market. American oil producers, though, fought to keep deriving the benefits of the European market. They surged on the amount of oil being sent to Europe to history-making amounts. On the other hand, this led to lower prices and not much in the way of profits. If profits go away oil producers need to scale back operations and reduce their employee count.
This is a placeholder account for Talos Energy LLC in Houston, Texas. Questions about the company should be directed to 713-328-3000.
— talosenergy (@talosenergyllc) February 12, 2013
Since that time there has been a gradual reversal in oil market and prices are heading higher, good news for oil producers like Talos Energy Inc. of Houston. How most companies get oil hasn’t really changed much in centuries. They drill a well and then pump it out, essentially. Countries with proven oil reserves have great power on the world stage because the modern world runs on oil.
Talos Energy doesn’t do onshore drilling. They drill out in the waters of the Gulf of Mexico. The management team at this company says that oil prices have been a rollercoaster for a while now. With the world economy continuing to expand this is likely to continue to be the case. Looking back to 2014, a barrel of oil was worth $110. In 2016 it dropped all the way down to $26 and then shot back up to $50, later on, that year. It is now trading around $70 a barrel.
Some people argue that higher oil prices help economy, others say it hurts. Some experts make the case that lower oil prices help people spend their money on other goods, boosting the economy. However, other experts say that higher oil costs send money into the global economy where it is invested.
Talos Energy is a publically traded company that was established in 2012. They explore for oil offshore and are also oil producers. They have a number of deep water assets in Gulf of Mexico and are active on both the U.S. and Mexico sides of the border between these two countries.
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