Whether you call it lockdown, quarantine, self-isolation, or simply being cautious, it makes no doubt that the coronavirus pandemic has dramatically changed the way we behave in everyday life. Most professionals who could afford to work from home relocated the office into the lounge or the spare bedroom during the crisis. As a result, people have been driving significantly less. Manufacturing industries and transports have stopped most activities, leading to a drop in demand for oil and gas. Of course, we all know that it is only a temporary measure to keep everybody safe.
However, what you might not have considered is how COVID-19 has affected the oil and gas industry. Would we be able to go back to our usual driving ways once it is over? It’s hard to tell as the oil industry struggles with massive disruptions to supply chains and demand. The OPEC countries failed to agree on stable production levels in March, creating a volatile market and putting more jobs at risk. How can the oil and gas industry recover?
They are gathering knowledge & advice for financing management
While there is support available for businesses of all sizes, most oil and gas companies don’t benefit from simple government grants during the pandemic. Due to the scale of their activities and their significant role in the modern economy, many turn to professional accounting and development solutions such as Copas.org for support. Indeed, the global crisis requires an active exchange of ideas from every player to innovate and tackle the new challenges. Together, and by presenting a shared forecast of costs and revenues, they can influence governments and global organizations in delivering the legal, financial, and social assistance to rebound after the pandemic.
They usually plan maintenance ahead
The disruption from COVID-19 doesn’t only affect demand and supply chains, but it has also halted maintenance for oil and gas refineries and projects. Indeed, without regular repairs, checks, and replacements, pipelines and refineries are at risk of unplanned delays and outages. Unfortunately, easing the lockdown measures isn’t the answer to the problem. For many oil and gas maintenance works, the weather windows for repairs and checks can be extremely narrow, which postpones maintenance until next year. Additionally, many expect a peak in demand as soon as the situation has calmed down, which will put additional pressure on the unmaintained equipment.
They take additional protective measures
As lockdown measures are easing, more and more businesses can bring their people back to work. Normality, however, remains a long way from now. Oil and gas industries have to be creative to keep their employees safe, encouraging flexibility in the office, and practicing equipment sanitizing on sites. While essential, these health regulations present an obstacle to meeting production demands. It is likely that the oil and gas industries will have to curb out production volume to reduce pressure on staff.
Will the oil and gas industry recover from the pandemic? It’s a question we can safely answer by the affirmative. However, it is fair to say that the future of the industry will be different. We can expect a more rapid shift into renewable energy to help meet demands.