Pandemic and the
Industry M
any industrial “oil gurus” in the oil and gas industry will have encountered a major down turn as oil prices have once again battered, this time due to the knocking down of demand linked with COVID-19 and the price war between Russia and Saudi Arabia. Many questions remain unanswered in the operations of the industry. What path lies ahead for the industry in the coming months and years? Will this down turn lead to a significant upturn of the industry or crash it to its lowest level of productivity? How is the industry coping with productivity as at now? Answers to majority of these questions remains veiled and left for the future. Is an industry traditionally thought of as resistant to change, properly equipped to deal with this crisis? Major impacts of COVID-19 leading to the historic down turn are as follows; Operational obstructions and supply chain risks Activities of the Oil and Gas industry are generally considered vital activities by governments and have in most countries being exempted from the measures stated for either total or partial lockdown. On the other hand, fervent operations will obviously become increasingly difficult as a result of workforce shortages as employees are infected by the corona virus and offshore workers have to balance maintaining social distancing while living and working in confined spaces; travel bans and quarantines inhibit companies’ ability to travel and conduct meetings; and the uncertainty that runs through the pandemic does nothing to reassure a historically volatile industry.. Companies should, therefore, be prepared to operate skeleton crews to continue operations. Obstructions are expected in the areas of maintenance, inspection, repair and replacement of equipment and drilling activities. Operators will also need to consider: • third-party contractors who work on-site and the alignment of COVID-19 policies; and • the prospect of sealing off wells as a result of the reduced number of personnel on drilling rigs falling below the level required by health and safety regulations and the reasonable and
