Over $85bn of 2020 forecast expenditure erased from oil and gas sector
To protect balance sheets, maintain shareholder pay-outs and preserve cash, oil and gas companies have gone into survival mode, reducing forecast expenditure where possible to weather the impact of Covid-19 and oil market volatility. As a result, capital expenditure (CapEx) cuts of over $85bn from over 100 tracked companies across the industry have been announced so far.
The impact of Covid-19 on the oil and gas supply chain
Daily activities of producers, equipment and service providers, EPC contractors, storage and transportation companies, fleet operators, traders, and marketers are getting delayed or cancelled. This is potentially creating gaps along the oil and gas supply chain, which might take a while to fix.