How the pandemic has affected the Oil and Gas industry?
The imbalance of supply and demand in oil caused by the pandemic has shaken the oil companies and different oil-based economies. There is plenty of oil being produced, but the virus-induced lockdowns worldwide caused a steep dip in the demand.
Transport is lesser than ever before, the airline business has come to a halt, and factories are shut down. To make things worse, the loss of business and jobs results in reduced purchasing power of organizations and individuals, no wonder the demand is at a historic low.
The oil and gas industry is one of the most highly regulated industries due to its impact on the ecology and economy. The different entities participating in the supply chain of oil and gas have to invest a lot compared to other sectors, to comply with the stringent regulations, and to keep the supply chain uninterrupted. Right from the company which is into crude extraction to a retailer, it’s evident how big the infrastructure and resource requirements are.
What is the status quo of Oil and Gas industry?
We are surrounded by everyday objects which are made out of petroleum extracts of different grades. But the lion’s share of demand is coming from the need for transport.
Oil is the most widely used transport enabler. Lockdowns and reduced purchasing power result in reduced demand for transport also, which has sent jitters throughout the oil and gas industry.
Looking from a broader perspective, Oil and Gas industry is not the only casualty of the pandemic. Like many industries, it was also at the receiving end of the pandemic-triggered shockwave.
The certainty among all the uncertainties is that things cannot remain the same and we are witnessing a fast-paced recovery to normalcy. This recovery is getting reflected in the oil and gas industry as well, which is evident from the corrected international oil prices indicating a rebalance in the demand and supply.
Is it the right time to become part of the Oil and Gas industry?
The answer is YES.
This is the best time to become part of the Oil and Gas industry. Let it be any industry there are two times that you can look to get into it. The first is when the industry is booming. As far as oil and gas are concerned it is a properly formed, expanded, and saturated industry worldwide. So, the first opportunity is not there anymore.
The second-best time to get into an industry is when it is at a recovering phase. The recovery of Oil and Gas industry is one of the pivots when it comes to restoring normalcy worldwide. So, the opportunity is there and it’s inevitable. The industry which has paved the way for industrialization and globalization also has to be the vital cog that can keep the world ticking.