The combination of reduced demand driven by COVID-19 and a supply glut has resulted in the sharpest, fastest drop in oil prices in decades. The effects are being felt across the hydrocarbon value chain and around the world. Although it's not the first price collapse to hit the industry, the recovery timeline seems far less certain this time around. Oil and gas companies will have to take both short- and long-term actions to protect themselves and their workforces, operations, and customers to ensure survival and eventual renewed profitability.
Beyond the initial announcements of lower capital investment, many leaders will pursue operating expense and workforce reductions. These cuts will come on top of the massive strides made in lowering operating expenses over the last five years as oil prices settled into a “lower for longer” pattern.
