May 2020 Monthly Floating Production Systems Report
The Covid-19 crisis and oil price rout continue to seriously impact sentiment and planning in the offshore oil and gas sector. But recent developments indicate the market likely bottomed over the past month and the offshore sector is now in the early stage of recovery. Projected decline in oil demand during 2020 is now expected to be less than earlier thought, the oil glut is falling as producers aggressively cut oil supply and oil prices have recovered some of the huge losses in March/April. While oil prices still remain well below the pre-crisis level, the spot price of Brent has risen more than 70% over the past month --and the market value of key offshore oil/gas operators has recovered some of the losses incurred in March. Not that the industry is out of the woods – but at least some green shoots have appeared. Meanwhile investment in deepwater projects remains on hold. All is discussed in the May WER report.