Posted on: 04. 28. 20
The shifts in how COVID-19 and events surrounding the pandemic impact the energy industry as a whole are drastic. Unfortunately, the oil and gas sector has been hit the hardest, with record-low crude oil prices and giants in the industry filing for bankruptcy. However, at Pro-Gas, LLC we know that the ebb and flow of oil prices can change in an instant.
For now, here are some of the latest new insights that we’ve seen over the last month.
Currently, the Oil Surplus Outweighs Demand
Summer is right around the corner, and usually, this is the point in time where oil prices begin to rise. As people think about travel and plans get made, oil is bought up and sold at market-thriving prices.
However, with the current pandemic and most of the country under shelter in place orders, the demand just isn’t there and it’s hurting our industry, with oil trading in the negatives.
The Industry Looks Towards Renewable Energy
Although times aren’t the easiest for crude oil, according to an article from Forbes, our market could naturally begin to turn around in the fourth quarter of 2020. According to the article, now, oil producers must diversify their portfolios to remain competitive. This means we could see a move into renewable energy territory. These forward steps could bring on some serious consolidation that could actually strengthen our industry.
The Global Price War Rages On…
One of the biggest issues that set our industry off on this downward domino effect is geopolitics! The crude oil price war between Saudi Arabia and Russia has been going on for over a month now, with devastating effects on our crude oil’s price per barrel.
Although the world has yet to see concrete steps towards resolution, according to energy specialist, Wal van Lierop, the low prices on oil won’t last forever within either political power’s nation.
With prices as low as 25 dollars per barrel, the situation isn’t sustainable without either nation suffering the economic consequences. We will continue to keep our eyes on this crucial story that could end in a huge step towards recovery once tensions cool down.
For the Latest Industry News, Trust the Experts at Pro-Gas, LLC
At Pro-Gas, LLC we love the industry and everyone who plays a role in making it succeed. Right now things may seem grim, but the truth of the matter is, that the sun will eventually shine on us again. With federal efforts and the hope of global quelling in the price war, we will adjust to a new normal that allows us to excel again.
Coronavirus has impacted our nation’s health and economy in many crippling ways. However, we implore you to stay safe, stay patient, and help us win the war against this virus together. For the latest updates on oil’s way back to the top stay tuned with us and remember, we’re always here to help.
