16 April, 2020
Article length: 643 words
Stranded oil assets a pressing issue for hydrocarbons producers
Under immense pressure from the global spread of Covid-19 and plunging oil demand, governments and IOCs must once again fine-tune their strategies to meet hostile market conditions. This may mean not only delaying upstream projects but cancelling them altogether as, in the longer term, global markets shift out of carbon dependency.In the short term, efforts to revive the so-called Opec+ cooperation between Opec and non-Opec crude exporters should help to reverse the price slump, but the deal seems unlikely to raise prices to levels envisaged in producer governments’ 2020 budget forecasts.