Question

what is the effect of oil and gas sector in corona virus

Answer 1

Global demand for oil is projected to decrease by 2020 as the impact of the latest coronavirus (COVID-19) is increasing across the world, restricting travel and broader economic activity The coronavirus crisis affects a wide variety of energy markets – including coal, gas and renewables – but its effect on oil markets is especially serious as it prevents people and commodities from moving about, from dealing with oil.

Ultimately, the short-term outlook for the oil market will depend on how rapidly governments move to control the coronavirus outbreak, how successful their efforts are, and what residual effects on economic activity the global health crisis has. At the same time, the world's oil output capacity is projected to rise by 5.9 million barrels a day, with the study estimates more than three-quarters of this coming from non-OPEC producers. But demand growth in the US and other non-OPEC countries is expected to lose momentum after 2022, enabling Middle East OPEC producers to turn the taps back to help keep the global oil market in equilibrium.

The medium-term market study, Oil 2020, also looks at the effect of clean energy transformations on developments in the oil sector. Growth in demand for gasoline and diesel between 2019 and 2025 is expected to decline as countries around the world adopt policies to boost performance and reduce carbon dioxide emissions – and as interest rises in electric cars. The effect of changes in technology on oil supply remains uncertain, with several companies prioritizing short-cycle ventures for the years to come.