Rystad Energy

Gas demand is expected to grow by just 2 Bcm in 2020, down from previous expectations of 6 Bcm. The Netherlands, UK, Germany, and Spain are expected to see the biggest impact.

Leaders of Rystad Energy went online recently to talk about the effects of the coronavirus pandemic on the oil and gas industry, and the prognosis isn’t good.

Revised estimates of project sanctioning total $61 billion in 2020, which is down from $192 billion forecast in 2019.

More than 200 companies could become insolvent in the UK and Norway. This number may be larger when including the rest of Europe.

Because offshore project lead times are longer than in shale, production is likely to come on line in 2–5 years when oil prices may be higher. But the number of FPSOs to be sanctioned this year may be cut by half.

The most recent hydrocarbon production boom is under way in the Middle East, and this time, the race is spilling into offshore waters.

Sharp reductions in operating expenses has rekindled growth and exploration in the UK North Sea, but this fragile recovery will require a continued luck in exploration drilling and a focus on holding the line on costs, which are still high.

A total of 12.2 billion BOE was discovered worldwide in 2019—the highest volume in 4 years, with offshore regions dominating the list of new deposits.

Global OPEX is falling, and the UK has emerged as a cost-cutting powerhouse among global offshore regions feeling the squeeze of uncertain oil prices. In pursuit of lower unit prices, Rystad Energy says that operators and contractors have begun nurturing operational improvements.

Reduced investment in US shale will continue to weigh down the global oilfield services market through 2020.