For the past several months, we have noticed that the price of gas has dropped. In some states, these prices fell as low as $1.00 per gallon which is something we haven’t seen since the 90’s. The idea of traveling far and wide at a fraction of the cost is fun to daydream about, yet the whole world has been shut down. Can the Oil and Gas industry bounce back and stay competitive in the wake of a worldwide pandemic?
As the pandemic began to unravel, Oil and Gas companies paused or pushed back on production. Mass layoffs took place in order to conserve cash. To survive in this new normal, these companies must learn to adapt to three major changes:
- Fluctuating oil demand
- “Lower for longer” strategies
- Energy transition