Amid the Covid-19 pandemic, energy major Shell has announced that production at its Prelude floating liquefied natural gas (FLNG) platform off Western Australia will not resume in 2020. The Prelude project went offline in February due to electrical tripping and the company is facing many hurdles to restart full production, a Reuters report said.
Crude producers in Russia have announced plans to reduce oil drilling activities by 20% in 2021 due to impact of the coronavirus pandemic on oil price and demand. Russia has already reduced production by at least 33% in 2020 under a deal with the Organisation of Petroleum Exporting Countries (OPEC) that is expected to continue until April 2022.
Three trading companies including Vitol, Gunvoe and Trafigura have forecast that oil demand is expected to reach its peak during the next decade. The oil market has surpassed its peak in US and Europe and the decline in demand in these regions will be offset by the Asia-Pacific region, specifically the Chinese market.