Alexa

OIL AND GAS

Coronavirus Cuts 2020’s Oil and Gas Investments by $30 Billion

Coronavirus Cuts 2020’s Oil and Gas Investments by $30 Billion
The Siliconreview
03 March, 2020

The coronavirus disease has caused extensive staffing and supply shortages in the oil and gas industry along with a fall in investment of around $30 billion in 2020. Rystad Energy suggests that while experts do not know exactly when the effects of the epidemic will ease, they predict that the situation will worsen by March and the virus will affect the entire global industry.

The firm has said that oil prices have slid by almost 25 per cent this year as a result of lowered demand and slower expected economic growth, a situation which will end in oil and gas companies scaling down their investment budgets, particularly the shale operators in the US as well as some offshore exploration and production players.

According to Rystad Energy, the outbreak could postpone the deliveries of oil platforms and other equipment from yards by at least three to six months due to travel bans and staff shortage.

Audun Martinsen, Head of Rystad Energy’s Oilfield Service Research, said: “Our current assessment forecasts that COVID-19 could result in global exploration and production investments falling by around $30 billion (£23.4bn) in 2020.

“Although operators and contractors are looking into ways to make up for some of the time that will be lost by fast-tracking other stages of development, we anticipate first oil or gas for these projects will face clear delays.”