Before the outbreak of the COVID-19 pandemic, the global oil and gas industry was at an inflection point. At the start of 2020, with oil, natural gas, and LNG markets each in a state of over-supply, the industry was faced with a challenging dilemma: how to successfully manage the disruptive threats posed by the energy transition while simultaneously navigating a relatively low commodity price environment with balance sheets still recovering from the last downturn in 2015-2016.
Nine months later, no one could have predicted the unprecedented events that have unfolded in 2020 due to the effects of COVID-19. The sharp decline in energy demand caused by the coronavirus’ impact on the macroeconomy and the global collapse of oil prices has raised a host of new issues for the industry. The pandemic has intensified uncertainty around future investment and accelerated pressure from investors to clarify the implications of the energy transition on their operations and business models.
This multijurisdictional survey current to Q4 2020 summarizes the response of 24 key oil producing jurisdictions to the 2020 oil price crisis and the drop in demand resulting from the COVID-19 pandemic. For each of these jurisdictions our Baker McKenzie oil & gas experts have outlined the government’s response to the crisis, the ensuing sector vulnerabilities, as well as certain critical issues to watch out for — including the implications for the energy transition for each country. An interactive map enables clients to easily access jurisdictions of particular interest.
