Oil inventories are dropping, federal regulations are dissipating, and OPEC members are committed to limiting production. The year ahead holds immense promise for oil companies. Oil field services are getting expensive, labor is in short supply, and higher prices could limit demand growth. Exploration and production companies will struggle to compete in 2018. The energy business is finally getting back to normal. After three and a half years, the oil glut produced by horizontal drilling and hydraulic fracturing in the United States is shrinking. Inventory at the Cushing, Okla., trading hub fell to 51.4 million barrels, the lowest level since March 2015, according to the U.S. Energy Information Administration.
