I agree Diana. Although I am loath to admit it, it's clear that we need to see oil prices rise to a fair price if we want to see projects and technology improve, and to see advances in the energy industry overall.

That said, whether the oil and gas industry will ever manage to maintain a steady, and fair, price for oil and gas remains to be seen.

I think the key issue here is not one of falling prices, but one of volatile prices; oil companies just don't know what their revenues are going to be from one quarter to the next. Look at BP for example – at the end of 2008 they were pilloried for announcing record profits on the back of the oil price spike, yet January saw fourth-quarter profits slump by 24 percent as prices plummeted (try figuring those numbers into your annual budget).
My point is, oil prices are always going to fluctuate; firms should therefore be looking at investment as a long-term priority, rather than just slashing budgets whenever prices drop. Investing in technology and people is essential to survival.

Absolutely Jamie. Back in the late nineties when oil was less than US$20 a barrel the oil companies laid off engineers and slashed budgets and technology investments. Hence, the talent crunch we are witnessing lately and limited investment in alternative energies.

Price volatility and fluctuating demand aren't hugely relevant in the long term . It is a fact that people will always want oil, just as it is that it will become more difficult to locate and extract. Failing to make investments now is just storing up huge problems for the future. Sure prices are hovering around $60 a barrel now, but ultimately prices are going to go up and they are going to stay there. It's surely worth preparing for this reality.