Energy Industry Post Pandemic
A few months have passed since the initial coronavirus outbreak spread across the world and caused the countries to implement extreme albeit completely valid rulesets such as community quarantines, nationwide lockdowns, mass testing operations, and medical frontline endeavors, among other methods to buttress the coronavirus’ spread.
Many industries as well are reeling from the adverse effects of the virus, doing everything in their power to remain working in a slowly collapsing economy.
One such industry that faced multiple consequences thanks to COVID-19 is the oil and gas industry. After the months that have passed, one question still remains: is this post-coronavirus season a new age of reckoning or opportunity?
12 Years Before the Energy Industry Post Pandemic
Since the oil and gas industry is currently experiencing its third price collapse in 12 years, it has been steadily on the decline. Left unchecked and unaccounted for, there will be no sure sign of a turnaround any time soon. This collapse is unlike the industry’s first two disruptions, where they managed to bound back, some might even say better than before.
The current context combines a supply shock with an unparalleled demand drop and a global health crisis. The red coveralls of the oil drillers went down the hill while medical face masks went up to the roof.
In addition, the sector’s financial and structural health has worsened.
Energy Industry Post Pandemic – How to Survive
The energy industry need a doctor to put on a full face respirator so the oil and gas industry can breathe again. So to combat this decline, the industry are looking to different companies for inspiration.
A handful of companies whose business models or asset bases are already distinctive can thrive in the new normal, such as Mittal Steel Company and Nucor Corporation, to name a few. They built a model around acquiring assets with structural advantage and then cut costs and improved operations and combined industry-leading operational capabilities with a first-mover status in electric-arc furnace technology, respectively.
Following these business models of success will indubitably create an oil and gas industry of the future in both talent and structure––one that is ready to face the new normal.
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