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Oil and Gas companies are struggling to stay afloat during the pandemic. Over the past five years,
oil prices have been in a slow decline. However, since the beginning of the year oil and gas
prices have dropped by nearly forty percent. This has caused mass layoffs and has spooked
investors in oil and gas. Ahmed Ali Attica, CEO of Apicorp, “said that the energy sector is set to
see a huge hit on investments”. Rystad Energy has projected that Exploration and Production
(E&P) companies could lose as much as a trillion dollars in revenue this year alone. The oil and
gas industry since the beginning of the pandemic has lost 107,000 jobs. Most are projected to
take years to return if they even do. These jobs might never return because Carbon tracker a
London think tank has projected the oil company to decline from 39 trillion to 14 trillion by
2050. Last year the oil and gas rig count were 569. Just a year later only 282 are still operating.
Covid has caused a decline in demand for oil and gas in a few ways, Airlines are not flying as
many planes or are going under causing a decrease in demand for Oil. Since many are working
from home because of the pandemic, people are not driving the work anymore.


Covid has also made people stay at home more meaning that they do not need as much gas as they did pre-pandemic
On July 20th Chevron announced that it was acquiring Noble Energy. It cited the main reason for
this acquisition is because of their shale fields and its assets in Israel. Devon Energy announced
in September that it is acquiring WPX Energy for 2.6 billion dollars. In October ConocoPhillips
announced that it was acquiring Concho Resources for 9.7 billion dollars. Since covid began 50
companies have sought bankruptcy protection. If this does not work these companies will look to
being acquired by more stable companies in the oil and gas industry. However, some are not sure
the funding required to acquire some of these smaller companies is simply not available to Oil
and Gas companies. Since to many, the future of oil and gas is poor, private equity companies are
less likely to give over the money that is necessary. Another problem is some of the bigger
companies are struggling to stay afloat and are having a hard time paying off their
own debts. If big players in the oil and gas industry such as Chevron and Conoco are able to


continue to acquire some of these companies could lead to an acceleration of the industry
consolidation which would benefit big companies such as Chevron and Conoco as well as their
stockholders. Whatever is to come in the oil and gas industry one thing is very clear. Oil and Gas
will not look the same as it did pre-pandemic, and the job outlook for people in the industry
continues to look more daunting.


Fossil fuel industry in “terminal decline” — report

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