Standing still is not an option for oil firms
Next year will not see a return to business-as-usual. Companies should not deny the new paradigm, but embrace it
The global economy and capital markets have rebounded strongly—and much faster—than many predicted in the second half of 2020. But the optimism seems to be bypassing the oil and gas (O&G) industry. The Brent crude price benchmark, for example, remained largely rangebound around $45/bl since June 2020 and, even on the back of Covid-19 vaccine optimism, has struggled to decisively breach $50/bl as the year ends. Similarly, oil demand, which has recovered from April’s 25pc fall, is still 8pc below its pre-pandemic levels. In fact, the recovery in road and jet fuel demand growth moderated in late 2020 as Europe and the US struggled with second and third waves of Covid-19 infections respectiv
Also in this section
28 March 2024
As a gas supply shortfall looms, balancing regulatory flexibility with energy security and investor confidence will be critical
27 March 2024
Oil producers have to untangle the increasingly complicated relationship with their natural resources
26 March 2024
Strategic stocks have become as much a market management tool as a security of supply buffer, and this new tactic is likely to continue beyond the next election
25 March 2024
Low carbon intensity and sizeable projects such as Johan Castberg coming onstream in late 2024 suggest a robust outlook at least until 2030