Page 20 - Impiantistica Industriale

FORECASTS

Covid-19 impacts on Oil & Gas:

short, mid, and long term

In the current Covid-19 crisis,
which is shaking the world and

creating enormous uncertainties
also to the Oil & Gas industry, the

Companies are having a hard time
evaluating the impacts to their

environment and wondering what
should we do next?

Jean Guilhem, Jean-Charles Guilhem, 2B1st directly on tankers. Around 120 millions barrels are
Consulting currently stored in vessels anchored close to their
unloading docks. For example, the map of tankers
anchored around Singapore at the beginning of
ince the barrel price war initiated by May (Exhibit 1 - One green dot being a tanker).
Russia and Saudi Arabia entered a
new phase, the major problematic hit- Anyway, these 120 million barrels represent only 1.5
ting the Oil day of consumption.
and Gas Therefore, the short-
Smarket term vision is not that
has been the unbalance The major problematic hitting dark, as at this date
between Demand and the Oil and Gas market has been most of the industrial
Supply. countries are getting
First effect is the nose “the unbalance between demand out of their confi nement
dive of the barrel price. and supply and experience a return
Gone negatives in April, in Oil demand. If we are
due partly to the fear looking at the percenta-
of lack of storage and speculation strategy from ge of Oil demand in 2020 compared with 2019 on
opportunists, we are not protected to experience two references dates, April 15th and May 6th, on
again drops of the barrel price in our close future. both years, we can see on the table how much the
The second effect has been the massive storage of level of demand in four key countries is still low but
Oil all around the world. At the end of April, around have increased signifi cantly in the period of only 3
3 million barrel were still estimated overstocked weeks.
daily. Onshore storage capacities being already
almost full, the storage of Oil is now taking place This recovery refl ects how these economies are

18 18 Impiantistica Italiana - Maggio-Giugno 2020