In an interview given to Gaurav Sharma from Forbes, Dr Carole Nakhle, CEO of Crystol Energy, discusses the impact of the Covid-19 pandemic on exploration and production companies and the oilfield services firms.
Dr Nakhle opines that even going into a cautiously optimistic mode later down the year is looking precarious for companies, marking a big difference from the sector downturn witnessed in the wake of the global financial crisis. Back in 2008, prices bounced back quite rapidly as OPEC implemented three consecutive cuts and maintained an impressive discipline. The current mood within OPEC does not convey such intention and the coronavirus is having a sweeping effect, depressing demand across all markets, particularly oil, with no clear end in sight.
Dr Nakhle also raises a key point that’s lost in all the doom and gloom chatter about the oil price slump – that of natural gas prices, currently trading both in the U.S. and globally at record lows.
“The impact of Coronavirus on oil markets”, Dr Carole Nakhle, Feb 2020