The oil and gas industry has fueled the growth of the global economy for more than a century, and now it is learning how to navigate the dramatic loss of global demand and historically low oil prices. With the COVID-19 crisis, it is more important than ever to further the industry’s efforts to rapidly adapt to new ways of working smarter in these unprecedented times while looking for ways to go beyond the current business model to become more resilient.
As things stand, 2020 is expected to have the biggest decline in oil consumption in nearly 60 years and this uncertainty may spill over to 2021 as well. Transportation across Asia, Europe and North America is at a virtual standstill as many governments are asking people to stay home. Adding to these woes, a war for market share between Russia and Saudi Arabia has led to plummeting oil prices. The April 12th agreement between the Organization of the Petroleum Exporting Countries+ to end the war may not be able to account for the worldwide demand decrease but may provide the much anticipated price support in the near term. The United States is also bracing for one of its most difficult yearswith rising unemployment, oil exports dwindling in an over-supplied global market and storage capacities across the globe nearly filled to the brim.