Corona virus is affecting Oil and Gas Industry

The World Health Organisation has declared the Covid-19 coronavirus outbreak an epidemic, and lots of companies are taking precautions against the impact and spread of the virus.

The virus has forced companies to slow or halt physical operations, impacting production within the upstream sector. Meanwhile, downstream operations are upgrading their systems and pushing to figure more flexibly.

Offshore Technology examines the measures put in situ and predicts the potential future impact of the Covid-19 coronavirus on the offshore industry.

Oil Price Crash

One important impact of the coronavirus outbreak on the downstream refining industry is that the worth of petroleum has fallen significantly during a short time, taking billions off the stock prices of major oil and gas companies.

At their summit, OPEC countries agreed to chop another 1.5 million barrels per day from production. They then met with Russian representatives to propose it took 500,000 BPD of the cuts, but Russia didn’t agree. Talks continued as stock markets closed.

Demand Drops

Last week, Austrian company OMV said Europe’s demand was steady, apart from kerosene. As governments advise people to scale back social contact and far international travel is banned, less aviation means less kerosene consumption. this is often particularly noticeable. In transatlantic flights after the US stopped all travel with Europe.

US company Chevron has asked employees to defer travel. And it had been among the primary to send downstream employees home. the corporate sent employees at its London offices home on 26 February after an employee displayed “flu-like symptoms”.

Chevron said it’s screening workers and visitors. A spokesperson told Offshore Technology that screening levels were “based on criteria that include local health authority recommendations and regulations. The number of recent travelers at the power and therefore the capability of health infrastructure within the community.”

Rig Infections. The worker worked on a rig within the Martin Linge field within the North Sea.

 

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