The importance of oil as a source of energy can hardly be exaggerated and it is difficult to imagine a world without oil, notwithstanding the relentless search for affordable alternatives. The world as we know is heavily dependent on relatively cheap oil. Experience tells us that any sharp increase in the prices of oil would have deleterious effects on the world economy.

Oil costs have been exceedingly fickle. The first “oil shock” in 1973 has blanched in comparability with consequent abrupt increases. Oil prices per barrel breached the $40 level in 1980, before plunging to slightly above the $10 benchmark in 1985. During the Gulf War in 1990, oil prices shot up but fell short of $40 per barrel, after which prices trended down again close to the $10 mark in 1998.

In an apparent aftermath of the war in Iraq and the war on terror, oil prices have reached an all-time high of over $42 per barrel before cooling somewhat. Oil prices have been hitting the roof off late mainly because of increased demand from China and some supply disruptions in the oil producing countries. The world is much better placed to face an oil shock today than what it was in the 70s because the oil intensity has reduced considerably over a period of time.

Requirement for oilfield machinery and gear in the United States will grow by 3.1 percent each year by 2009 to $5.6 billion. Development will profit somewhat from an increment in natural gas output though increases will carry on to be constrained by a decreasing supply of oilfield maturation aspects.

Boring gear will proceed to account for the bulk of oilfield equipment requirement by 2009, with pumps and valves a close second. Both product sections will profit from continuing developmental attempts in offshore and deepwater arenas.