Abstract
The outbreak of the Covid-19 epidemic and the resulting economic downturn have undermined the already weakened position of the global oil and gas industry. Since the transportation sector depends on 60 percent of energy from oil consumption, movement constraints are quickly interpreted into reduced oil demand. Consequently, various crude oil indices reached their lowest level by mid-2020, when the daily global oil consumption declined to less than 75 million barrels, compared to some 100 million barrels earlier that year, before recovering afterward.
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Notes
- 1.
Irina Slav, ‘Demand uncertainty could keep oil from breaking $100’, Oil & Gas Middle East, 18 November 2021 https://www.oilandgasmiddleeast.com/news/demand-uncertainty-could-keep-oil-from-breaking-100; Cyril Widdershoven, ‘The Energy Transition Will Be Impossible Without Fossil Fuels’, OilPrice.com, 18 November 2021 https://oilprice.com/Energy/Energy-General/The-Energy-Transition-Will-Be-Impossible-Without-Fossil-Fuels.html.
- 2.
Widdershoven, ‘The Energy Transition Will Be Impossible Without Fossil Fuels’.
- 3.
McKinsey, ‘Global oil supply-and-demand outlook to 2040’, McKinsey, 26 February 2021, https://www.mckinsey.com/industries/oil-and-gas/our-insights/global-oil-supply-and-demand-outlook-to-2040#.
- 4.
Rystad Energy, ‘Breakeven Price For New Oil Projects Drops In 2021’, OilPrice.com, 17 November 2021, https://oilprice.com/Energy/Crude-Oil/Breakeven-Price-For-New-Oil-Projects-Drops-In-2021.html#:~:text=The%20average%20breakeven%20price%20for,expensive%20sources%20of%20new%20supply.
- 5.
Haley Zaremba, ‘The Real Reason Big Oil Is Refusing To Boost Production’, OilPrice.com, 18 November 2021, https://oilprice.com/Energy/Energy-General/The-Real-Reason-Big-Oil-Is-Refusing-To-Boost-Production.html.
- 6.
Rystad Energy, ‘Breakeven Price For New Oil Projects Drops In 2021’.
- 7.
Jamie Ingram, ‘Adnoc Makes $6bn Drilling Awards’, MEES, 19 November 2021, https://www.mees.com/2021/11/19/oil-gas/adnoc-makes-6bn-drilling-awards/d2096610-4935-11ec-b2bc-696c68b99266.
- 8.
Irina Slav, ‘Saudi Crown Prince Unveils Net-Zero Industrial Hub In Smart-City Neom’, OilPrice.com, 18 November 2021, https://oilprice.com/Alternative-Energy/Renewable-Energy/Saudi-Crown-Prince-Unveils-Net-Zero-Industrial-Hub-In-Smart-City-Neom.html.
- 9.
Rystad Energy, ‘Breakeven Price For New Oil Projects Drops In 2021’.
- 10.
Jamie Ingram, ‘Abu Dhabi Plans Drilling Ramp Up’, MEES, 12 November 2021, https://www.mees.com/2021/11/12/corporate/abu-dhabi-plans-drilling-ramp-up/37a23200-43bb-11ec-9077-07482fc53343.
- 11.
Widdershoven, ‘The Energy Transition Will Be Impossible Without Fossil Fuels’.
- 12.
Ingram, ‘Adnoc Makes $6bn Drilling Awards’.
- 13.
Jamie Ingram, ‘Adnoc Looks To The Future With 30GW Renewables Plan’, MEES, 19 November 2021, https://www.mees.com/2021/11/19/power-water/adnoc-looks-to-the-future-with-30gw-renewables-plan/96d8a5e0-493a-11ec-9fa3-337c7b114f4b.
- 14.
OilPrice.com, ‘When Will Oil Supply Overtake Demand?’, OilPrice.com, 19 November 2021, https://oilprice.com/Energy/Energy-General/When-Will-Oil-Supply-Overtake-Demand.html.
- 15.
Tsvetana Paraskova, ‘An Undisputable Truth: The World Still Needs Oil And Gas’, OilPrice.com, 16 November 2021, https://oilprice.com/Energy/Energy-General/An-Undisputable-Truth-The-World-Still-Needs-Oil-And-Gas.html.
- 16.
Jamie Ingram, ‘Saudi Power Demand Hits New Peak’, MEES, 12 November 2021, https://www.mees.com/2021/11/12/power-water/saudi-power-demand-hits-new-peak/951e5210-43bc-11ec-8afa-f33c2f79e3a4#:~:text=As%20economic%20activity%20has%20rebounded,to%20230TWh%20for%209M%202021.
- 17.
Ingram, ‘Abu Dhabi Plans Drilling Ramp Up’.
- 18.
Rystad Energy, ‘Breakeven Price For New Oil Projects Drops In 2021’.
- 19.
Ibid.
- 20.
Irina Slav, ‘China Prepares To Release Oil From Strategic Reserve’, OilPrice.com, 18 November 2021 https://oilprice.com/Energy/Crude-Oil/China-Prepares-To-Release-Oil-From-Strategic-Reserve.html.
- 21.
Jamie Ingram, ‘Adnoc Awards Key Sour Gas Contracts’, MEES, 19 November 2021 https://www.mees.com/2021/11/19/oil-gas/adnoc-awards-key-sour-gas-contracts/aefde540-4935-11ec-90b8-7f1dfeb4f76e.
Bibliography
Ingram, Jamie. ‘Abu Dhabi Plans Drilling Ramp Up’, MEES, 12 November 2021 https://www.mees.com/2021/11/12/corporate/abu-dhabi-plans-drilling-ramp-up/37a23200-43bb-11ec-9077-07482fc53343.
Ingram, Jamie. ‘Adnoc Awards Key Sour Gas Contracts’, MEES, 19 November 2021 https://www.mees.com/2021/11/19/oil-gas/adnoc-awards-key-sour-gas-contracts/aefde540-4935-11ec-90b8-7f1dfeb4f76e.
Ingram, Jamie. ‘Adnoc Looks To The Future With 30GW Renewables Plan’, MEES, 19 November 2021 https://www.mees.com/2021/11/19/power-water/adnoc-looks-to-the-future-with-30gw-renewables-plan/96d8a5e0-493a-11ec-9fa3-337c7b114f4b.
Ingram, Jamie. ‘Adnoc Makes $6bn Drilling Awards’, MEES, 19 November 2021 https://www.mees.com/2021/11/19/oil-gas/adnoc-makes-6bn-drilling-awards/d2096610-4935-11ec-b2bc-696c68b99266.
Ingram, Jamie. ‘Saudi Power Demand Hits New Peak’, MEES, 12 November 2021, https://www.mees.com/2021/11/12/power-water/saudi-power-demand-hits-new-peak/951e5210-43bc-11ec-8afa-f33c2f79e3a4#:~:text=As%20economic%20activity%20has%20rebounded,to%20230TWh%20for%209M%202021.
McKinsey. ‘Global oil supply-and-demand outlook to 2040’, McKinsey, 26 February 2021 https://www.mckinsey.com/industries/oil-and-gas/our-insights/global-oil-supply-and-demand-outlook-to-2040.
OilPrice.com. ‘When Will Oil Supply Overtake Demand?’, OilPrice.com, 19 November 2021 https://oilprice.com/Energy/Energy-General/When-Will-Oil-Supply-Overtake-Demand.html.
Paraskova, Tsvetana. ‘An Undisputable Truth: The World Still Needs Oil And Gas’, OilPrice.com, 16 November 2021 https://oilprice.com/Energy/Energy-General/An-Undisputable-Truth-The-World-Still-Needs-Oil-And-Gas.html.
Rystad Energy. ‘Breakeven Price For New Oil Projects Drops In 2021’, OilPrice.com, 17 November 2021 https://oilprice.com/Energy/Crude-Oil/Breakeven-Price-For-New-Oil-Projects-Drops-In-2021.html#:~:text=The%20average%20breakeven%20price%20for,expensive%20sources%20of%20new%20supply.
Slav, Irina. ‘China Prepares To Release Oil From Strategic Reserve’, OilPrice.com, 18 November 2021 https://oilprice.com/Energy/Crude-Oil/China-Prepares-To-Release-Oil-From-Strategic-Reserve.html.
Slav, Irina. ‘Demand uncertainty could keep oil from breaking $100’, Oil & Gas Middle East, 18 November 2021 https://www.oilandgasmiddleeast.com/news/demand-uncertainty-could-keep-oil-from-breaking-100.
Slav, Irina. ‘Saudi Crown Prince Unveils Net-Zero Industrial Hub In Smart-City Neom’, OilPrice.com, 18 November 2021 https://oilprice.com/Alternative-Energy/Renewable-Energy/Saudi-Crown-Prince-Unveils-Net-Zero-Industrial-Hub-In-Smart-City-Neom.html.
Widdershoven, Cyril. ‘The Energy Transition Will Be Impossible Without Fossil Fuels’, OilPrice.com, 18 November 2021 https://oilprice.com/Energy/Energy-General/The-Energy-Transition-Will-Be-Impossible-Without-Fossil-Fuels.html.
Zaremba, Haley. ‘The Real Reason Big Oil Is Refusing To Boost Production’, OilPrice.com, 18 November 2021, https://oilprice.com/Energy/Energy-General/The-Real-Reason-Big-Oil-Is-Refusing-To-Boost-Production.html.
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Abi-Aad, N., Kozhanov, N. (2023). Challenges Facing the Gulf Petroleum Industry: Covid-19, New Technologies, Energy Transition. In: Kozhanov, N., Young, K., Qanas, J. (eds) GCC Hydrocarbon Economies and COVID. Palgrave Macmillan, Singapore. https://doi.org/10.1007/978-981-19-5462-7_2
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