The global demand for Oil and Gas is seeing a decline in 2020 due to the spread of Coronavirus around the world which has also squeezed broader economic activity, as per the International Energy Agency’s latest oil market forecast. There’s a lot of uncertainty over how would be the global impact of the virus.
Demand for Oil has dropped for the first time since 2009 because of the decline in oil consumption in China.
As told by Dr Fatih Birol, the IEA’s Executive Director
“The coronavirus crisis is affecting a wide range of energy markets – including coal, gas, and renewables – but its impact on oil markets is particularly severe because it is stopping people and goods from moving around, dealing a heavy blow to demand transport fuels”. “This is especially true in China, the largest energy consumer in the world, which accounted for more than 80% of global oil demand growth last year. While the repercussions of the virus are spreading to other parts of the world, what happens in China will have major implications for global energy and oil markets.”
This Podcast by Share Talk provides some of the recent company news of the Oil and Gas Industry.
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Below are a few quick highlights of the news presented in the podcast:
- The main issues affecting the Oil and Gas Industry overall are Coronavirus and its economic impact.
- Brexit and No-deal possibilities might also come into the focus.
- There has been an announcement from the Union Jack Oil (UJO) company about the acquisition of an additional interest in the Wressle Project. It’s buying a further 12.5% for £500,000.
Union Jack says it “remains in a strong financial position with current cash reserves in excess of £5.5m and fully funded for its existing drilling, testing, and development commitments on all of its projects during 2020.”
- Angus Energy (ANGS)announced that they have obtained prior approval for the installation of processing facilities at the Saltfleetby ‘B’ site.
- Egdon Resources plc (EDR) announced the signature of a Farm-In Agreement with Shell U.K. Limited (“Shell”) in relation to UK offshore licences P1929 and P2304 (“the Licences”) which contain the Resolution and Endeavour gas discoveries respectively.
- Europa Oil & Gas (Holdings) plc announced the acquisition of offshore Ireland licence in proven gas play.
- Bahamas Petroleum Company (BPC), which announced both the award of a petroleum licence offshore Uruguay and also its all-stock merger with Trinidad-focused Columbus Energy Resources.
- Hurricane Energy (HUR)announced the departure of founder, Dr. Robert Trice and he has been replaced by director Beverley Smith as CEO on an interim basis.
- Africa-focused oil and gas company Tower Resources (TRP) posted a full-year loss (Pre-tax losses for the year through December amounted to $2.7m).
- Nostra Terra Oil & Gas (NTOG) announced an operational and corporate update.
“The coronavirus crisis is adding to the uncertainties the global oil industry faces as it contemplates new investments and business strategies,” Dr Birol said.
Now the companies not only need to work on delivering the energy on which the economy relies but also have to work on reducing the emissions to tackle the climate challenge.