HOUSTON, TEXAS (Editors at Energy Analytics Institute, 29.Jan.2025) — In 2025, Core Laboratories plans to continue to execute its strategic plan of technology investments targeted to both solve client problems and capitalize on its growth opportunities.
Core said a cautious near-term approach was adopted by operators in the back half of 2024, driven by concerns over a potential imbalance between crude oil supply and demand. Core maintains its constructive long-term outlook on international upstream projects for 2025 and beyond.
The IEA, EIA and OPEC+ continue to forecast growth in crude oil demand between 1.1-1.4 million barrels per day (MMb/d) for 2025, which is in addition to the natural decline of production from existing fields, Core announced 29 Jan. 2025 in its quarterly financial press release.
As such, Core believes continued investment in the development of onshore and offshore oil fields will be required to meet demand.
And, in the near term, Core expects the oil markets will remain volatile due to global economic uncertainties and geopolitical risks.
“In Jan. 2025, expanded sanctions impacted the maritime movement and trading of crude oil and derived products, along with the demand for necessary laboratory assay work, and prohibited product sales and services to a broader group of entities,” Core said.
As a result, Core plans to remain well-engaged on long-cycle international projects.
International project activity
Looking ahead, as international project activity is expected to be steady, committed long-term upstream projects from the South Atlantic Margin, North and West Africa, Norway, the Middle East, and certain areas of Asia Pacific support mid-single digit year-over-year growth in demand for Core’s services and products.
In the US, onshore activity is projected to be flat to slightly down compared to 2024.
In addition to the geopolitical risks and recently expanded sanctions, Core expects typical sequential seasonal industry patterns will cause activity in the first-quarter 2025 to decline in some regions. Severe weather in the US and Mediterranean regions resulted in suspended client activities and facility closures, the company said.
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By Editors at Energy Analytics Institute. © 2025 Energy Analytics Institute (EAI). All Rights Reserved.