Page 21 - Impiantistica Industriale

Exhibit 1: Oil tankers an-
chored off Singapore used
as storage buffers – Source
Marine Traffi c

April 15 th May 6 th
Spain 19% 25%
USA 41% 59%
UK 30% 45%
China 65% 105%

Exhibit 2: Oil Demand in 2020 compared to 2019, per country

opening up again, giving positive prospects for fu- to cut production on May 1st, 2020 by nearly 12
ture. million barrels per day (b/d) from a reference le-
vel of 100 million (b/d). On the right, the demand
Mid Term: The Rehab decrease is given from the same reference of 100
million b/d, showing a signifi cant recovery month
The main problematic of the industry being the mi- per month.
smatch between demand and supply, the oil ex- The comparison of both columns indicates how the
porters started discussions in favor of production increasing demand and decreasing supply curves
cuts. should cross again on summer. Meaning the Oil &
Here below the table, compares the production Gas market should retrieve its demand/supply ba-
cuts announced by countries with the forecast of lance. For sure the industry has been under a lot of
Oil demand estimated by the International Energy pressure on the fi rst part of 2020, yet the market
Agency (IEA) Exhibit 3. is adapting and progressing on the path to a re-
On the left, the table indicates the decisions made covery.

The short-term vision is not that Covid-19 Reshapes Oil & Gas
dark, as at this date most and Petrochemicals
“of the industrial countries are

getting out of their confinement In reaction to the social and economic roller coaster
initiated by Covid-19, operators of the companies
and experience a return in Oil of the Oil & Gas and Petrochemical industry adapt
demand their strategies. Some delay projects, others speed
them up to restore their market share at low cost.

Production Cuts in barrel per day Demand Decrease in barrel per day
OPEC + 9.7 million April 30 million
Norway 250,000 May 25.8 million Exhibit 3: Oil Production
Canada 525,000 June 14.6 million Cuts in comparison with
US Majors 1 million December 2.7 million forecast of Oil Demand De-
crease

Impiantistica Italiana - Maggio-Giugno 2020 19 19