May 26, 2020 – Oil & Gas Facilities
Prudent Ways to Restart Big Projects in Post-Pandemic World
By Brian Balboa
Reduced budgets, lower operating and capital expenditure, job cuts, and work furloughs have become commonplace in the midst of the pandemic. Record-low crude prices, ample supply, and weak demand have impacted nearly every segment of the industry. Among the hardest hit, though, have been capital projects.
As construction activity across the industry has slowed or stopped, companies are scrambling to secure supply chains and rebalance project portfolios due to work process disruptions and engineering delays.
A few market intelligence agencies have provided their insights on ways the pandemic would impact the industry, while one industry group outlined how companies should prepare to restart key projects…
Read the full article here: https://pubs.spe.org/en/ogf/ogf-article-detail/?art=7110
…In mid-April, analytics group RBN Energy said for many of the already-struggling second wave of US liquefaction projects still under development, the one-two punch of the crude oil price crash and COVID-related lockdowns had further stymied—or in some cases even reversed—their progress toward securing long-term capacity commitments and reaching FIDs anytime soon.
This month, RBN Energy added while many companies have ratcheted back their 2020 capital spending plans, the bulk of their major crude oil, natural gas projects already under construction are proceeding. Most project delays should last only a few months, and a handful are either being reworked or deferred indefinitely.