Question

What challenges and/or opportunities do you think oil and gas industry is facing for the rest of 2020 and all of 2021 in terms of the economy? How do you think oil and gas industry is going to transform over the next few years in response to changes to the economy that arise from the COVID-19 event? As always, be sure to include your rationale for your conclusions. Maximum of 600 words. Thank you.

Answer 1

There are various challenges and opportunities that are related to oil and gas industry in the coming future because of the COVID-19 pandemic in the coming 2021 everything will change specially in the sector of auto mobile because nowadays people are not thinking to purchase the vehicle because this is a situation of survival so when this will happen that People Are not going to purchase auto mobiles then the rate of oil and gas will decreases drastically.

But there are definitely some opportunities that is related to new industrial establishment and settlement in those countries where factors of production is less so it is also a new opportunity to supply oil and natural gas to these countries for the stab list meant of basic or new industries.

But the situation is more critical in providing the basic needs for the auto mobile sector so the main challenges to retain the supply and to regain the level where we suffered a lot from this pandemic.

In a broader sense it is not all about the auto mobile sector lots of other industries are totally destroyed like real estate and the industries which offer the leisure and the comfort to the people.

So the scope of destruction of industries because of COVID-19 pandemic is very high and the industrial revolution is possible only with the help of oil and gas so when there is no industry in the economy then what is the use of oil and gas so if there is the destruction of industries and a drastic decrease in the production of the Goods and services in the industries then it is a difficult situation to cover this loss in coming future.

Various companies are now filtering their employees so it means there will be a massive unemployment in the global economy it drastically reduces the purchasing power of the people and with this effect the industrialisation growth will decrease and oil and gas are directly related with the industrialisation so if the growth of industries and is slow then it is not a good symbol for the oil and gas companies.

So in conclusion there are two things one the slow rate because of slow industrialisation in the coming years but there will be a chance of new industries establish meant in some underdeveloped or developing countries which will increases the opportunities to make open new dimensions of the sector.