ENR - COVID-19 and Falling Oil Prices Roil Oil and Gas Sector

 

March 23, 2020 – Engineering News-Record

COVID-19 and Falling Oil Prices Roil Oil and Gas Sector

By: Pam McFarland

Lower demand for oil as a result of the new coronavirus, in addition to the Russian-Saudi price war, is already leading to work stoppages, furloughs and spending cuts at energy companies, particularly oil and gas producers in the Marcellus and Permian shale plays. Analysts say the problems could lead to longer completion times for downstream construction projects that have halted, even temporarily.

David Braziel, president of RBN Energy, a Houston-based energy consultant, says, “The major slowdown in economic activity associated with COVID-19 –– and the sharp decline in the stock market –– will result in a stretching out in the construction timelines for some pipeline and petrochemical projects.”

The American Petroleum Institute’s chief economist, Dan Foreman, said in a statement, “The demand destruction resulting from the coronavirus combined with Saudi Arabia and Russia’s increasing supply has left global energy markets in unchartered territory.

Read the full article here: https://www.enr.com/articles/48988-covid-19-and-falling-oil-prices-roil-oil-and-gas-sector