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“The 2020 COVID-19 pandemic has affected almost every aspect of the global economy, as workers and consumers stay home and countries shut down non-essential businesses and services to limit the virus’ contagion rate. The oil industry has been particularly hard hit as prices for crude oil dropped to historic lows and consumers stayed off the roads and the airports,” said Boris Ivanov, founder of GPB Global Resources, an industry-leading oil exploration company, in a recent publication.

This comes when the way consumers use energy and how companies produce it are both evolving rapidly. The International Renewable Agency (IRENA) anticipates that by 2050, almost 70% of energy production globally will come from renewable sources. New technologies are making all of this possible — redefining the energy landscape in exploration and production, but in storage and transportation, turning solutions that once had little market viability into contenders in energy, as Boris Ivanov points out. As seismic shifts in industries have done in the past, this pandemic can become a catalyst for even greater change and investment in technology. …


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The coronavirus pandemic has created a supply and demand crisis for oil and gas worldwide as lockdown restrictions continue to mount.

The demand for oil has reduced by 23 million barrels per day since March 2020, consequently creating an imbalance in the commodity supply. According to Boris Ivanov, the industry has recorded the lowest prices in 15 years due to a decline in demand and a global oversupply. The major impacts are seen in the difficulties storing the commodity and in an all-time low in oil prices.

Oil capacity issues

One of the effects of the COVID-19 restrictions has been a severe shortage of pipelines and tanks used to store surplus oil due to the oversupply of oil products on a global scale. According to Boris Ivanov, the worldwide supply issue has seen traditional oil stores nearing breaking capacity. Using tankers as a form of storage has not been tested or proven to be effective and the Saldana bay oil storage terminal in South Africa has historically been used as an outlet for excess crude oil whenever there is reduced demand, but that facility has also reached nearly full capacity. The stock pileup caused by the demand and supply imbalance has the risk of overwhelming the oil industry’s logistics as well as saturating the storage…


The coronavirus pandemic has challenged the cornerstone of the world’s economies. The oil and gas industry is one of the industries feeling the impact of this health crisis as seen with the significant drop in the price of oil.

The industry has recorded the lowest prices in 15 years due to a decline in demand and a global oversupply of oil. The demand for oil has gone down by 23 million barrels per day since March 2020, consequently creating an imbalance in the supply of the commodity. The oversupply of oil products on a global scale has led to a severe shortage of facilities used to store surplus oil.

According to Boris Ivanov, GPB Global Resources’ founder, the pipelines and tanks used to store surplus oil are reaching breaking capacity due to reduced demand. …

About

Boris Ivanov

Founder of GPB Global Resources B.V | Gazprom Exploration & Production l Based in Monaco | https://angel.co/u/boris-ivanov-gazprom

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