The adverse impact of the global recession has taken its toll on capital expenditure spending among energy industry participants. It is the industry's reaction to the worst global recession since World War II and one of the deepest slumps in crude prices. Brookshire's review of over 1,900 industry companies in Asia, Europe, North America, and South America reveals that they, irrespective of geography or size, have indeed pared back investment spending. Brookshire's sample includes large, mid, small, and micro cap energy sector producers and participants on almost every continent.

Supermajors, independents, midstream and pipeline companies, the oilfield service sector, and refiners have all curtailed capital spending in 2009 to a mere 4.7% increase compared to 2008 spending levels. The impact of a retrenchment in investment spending today implies that once economic growth returns to some semblance of normalcy, there could be new supply-related pricing pressures looming in coming yea ...more

It surely have an impact, as it forms the maximum amount of imports and we are not self sufficient in it