The nightfall of the crude oil?
The effects of the low oil price on the energy sector
The second highlighted event of the 2015/2016 spring semester was on 27th April, 2016 organized by the Budapest University of Technology and Economics Student Branch Chapter. The lecturers were Csaba Pogonyi, György Volter and András Vinkovits. Csaba Pogonyi works at MOL Plc. as head economist. György Volter is the head of the Research-production Business Support at the MOL Plc. András Vinkovits is the President and Chief Executive Officer of the Power Plant Kelenföld Ltd. Our president, Norbert Péter opened the event and greeted the public and the moderator, who was Zsófia Végh.
The participants of the panel discussion heard up-to-date information about the most important mechanisms that influence the oil market in the short- and the long term. Moreover, we got to know what kind of impact of the present situation has on the production of the other fossil energy-sources. The audience could ask questions after the forum from the professionals.
Csaba Pogonyi held the first lecture on the event about the most important facts of the oil price decrease. The situation and the change of the oil market has a high impact on the energy sector. At the beginning of the lecture we got a little economic knowledge about the price transforming processes. The oil price reduced drastically in the past short term. The reason of this decrease was that the demand could not change as fast as the supply did. The oil market is characterized by oversupply. The problem became more serious, when Iran appeared on the market and since then the country continuously increases its production. More experts think that any structural change will not come in the next decades concerning the energy supply of the world.
The second lecturer of the evening was György Volter, who explained the consequences of the low oil price on the crude oil market and production of other fossil energy sources. The lecture was also about the Upstream activity of the MOL Plc. and the current challenges of this sector. Only the economical projects are operable and it is hard to find the balance and the resolve of this problem. Special problem in our country is the shortage of this competence.
András Vinkovits hold the last lecture of the evening and he talked about the effects of power plant energetics. The oil had a big rate in the electricity production until 1973. The natural gas became the determinative instead of the crude oil. Furthermore, the gas price moves away from the oil price continuously nowadays. It means that other facts cause changes in the price of the oil and the gas. A new and an important trend is the utilization of the renewable energy sources.
The participants asked from the lecturers and more professional dispute formed due to the number of great questions. Our Student Chapter invited the guests to a catering as closing the event.