The emergence of Covid-19 and measures taken to control the pandemic in most of the countries such as lockdowns and stringent travel restrictions has had severe repercussions on the oil and gas industry and its dependent sectors.
While the perils of the pandemic were felt across sectors globally, the aviation and industrial or manufacturing sectors are expected to be heavily impacted, according to a poll conducted by GlobalData.
Approximately 60% of the respondents believe that the aviation sector stands to lose much when compared to other sectors. Especially, banning international and domestic aviation services has severely impacted the sector, leading to a significant drop in jet fuel demand.
International Air Transport Association (IATA) estimates that average jet fuel demand for April could decrease by 70% when compared with the same period in 2019.
Note: The analysis is based on 401 responses received between 26 March and 21 April.
Nearly a third of respondents (29%) felt that industrial or manufacturing is the second most impacted sector by Covid-19. Precautionary measures to contain the pandemic have disrupted supply chains, particularly in countries where nationwide lockdowns have been implemented. As a result, industries that use oil and gas feedstock such as chemicals and fertilisers have stalled their operations, leading to decreased industrial fuel demand.
Less than 15% of the respondents opted for personal transportation and marine choices, probably as several countries have begun the process of relaxing stringent travel restrictions imposed in the wake of Covid-19 pandemic. However, the aviation sector continues to be the most affected due to Covid-19 impact on tourism and travel.