Oil industry includes operations, such as exploration, production, refining, and transportation, and marketing of petroleum and crude products. There is a considerable dependency on the oil production globally coupled with the growth in the transportation sector and increasing global energy demand. As a result, global economies continuously invest in petroleum-based products. In 2018, the aviation sector has witnessed potential growth coupled with the increasing demand for air transportation since 2000. Both passenger and freight aviation has reported enormous potential in 2018.
As per the International Energy Agency (IEA), in 2018, the total number of air passengers reached a record of 4.3 billion, increased from 4 billion in 2017. The availability of low-cost airlines and growth in the tourism sector were some crucial factors attributed to the positive growth of the aviation industry, which in turn, has led the demand for oil in the aviation sector. However, in 2020, the global demand for oil has declined sharply owing to the epidemic of coronavirus. Due to the COVID-19 outbreak, the government across the globe has stopped or reduced international travelling, which results in less consumption of kerosene oil.
The aviation sector is the second major consumer of oil with nearly 11.0% share in total oil demand in the transportation sector. As per the Organization of the Petroleum Exporting Countries (OPEC), in 2016, the aviation sector consumed 6 million barrels per day. Therefore, the ban on international travelling is affecting the demand for oil and thereby demand and supply side of oil has been significantly affected by this government ban. As per the IEA, in 2020, the global demand for oil stands at 99.9 million barrels per day, which is declined nearly 90,000 barrels per day from 2019. This is a major decline from the estimation by IEA in February, where it has anticipated that the global demand for oil would grow by 825,000 barrels per day in 2020.
Based on production, the report is segmented based on online and offshore oil production. Offshore oil production is being significantly affected due to the coronavirus outbreak. The energy produced offshore is a key component for the supply of oil and natural gas globally, which is increasingly a crucial source of renewable electricity. Several oil companies are reducing offshore workers to prevent the spread of COVID-19. Equinor, Repsol Sinopec Resources UK (RSRUK), Taqa, and China National Offshore Oil Corp. (CNOOC), have declared plans to reduce the number of workers to support stop coronavirus to reach its offshore operations. Equinor declared that an offshore worker had contracted with coronavirus. The government across the countries are also supporting the plan to reduce offshore workers, which in turn, will negatively affect the oil production capacity.
Based on geography, the global oil industry is classified based on four key regions, including North America, Europe, Asia-Pacific, and Rest of the World. In Asia-Pacific, a significant decline in oil demand has reported due to factory shutdown and travel restrictions. The congestion on traffic is below normal levels, which results in low levels of oil consumption in the road transportation sector in the country. China is the largest consumer of energy across the globe. The country accounted for over 80% of the global rise in demand for oil in 2019. As a result, the decline in oil demand in the country has negatively affected the global oil industry.
The major companies operating in the oil industry getting affected with the coronavirus outbreak include CNOOC Group, Equinor ASA, Saudi Aramco, Exxon Mobil Corp., and Chevron Corp. To make stable demand and supply in the oil industry due to COVID-19, OPEC planned output cut to support oil prices by 1.5 million barrels per day until June. However, Saudi Aramco refused to join this plan and declared that in April, it will boost its production of crude by more than 10 million barrels per day. The company aims to leverage its oil production and sell more crude oil to protect its market share. This will lead to oil prices much lower that could affect the profitability of the global oil companies.
Research Methodology
OMR global recently published a report addressing the impact of COVID-19 on the global oil industry. The study is incorporated by extensive primary and secondary research conducted by the research team. Secondary research has been conducted to refine the available data. Different approaches have been worked on to derive the market value and market growth rate. In the report, the analysis of the country is provided by analyzing various regional players, laws and policies, consumer behavior and macro-economic factors. The report includes analysis of different regions and countries and the effect of COVID-19 on the oil industry with each respective region. Besides, an expected recovery timeline of the industry will also be included with the best- and worst-case scenario which will aid clients to take their future steps in the decision-making process.
Sources Include
The report provides an in-depth analysis on market size, intended quality of the service preferred by consumers. The report will serve as a source for 360-degree analysis of the market thoroughly integrating different models.
The Report Covers
1. Report Summary
1.1. Research Methods and Tools
2. Market Overview and Insights
2.1. Scope of the Report
2.2. Analyst Insight & Current Market Trends
2.2.1. Key Findings
2.2.2. Recommendations
2.2.3. Conclusion
2.3. Government Initiatives for Oil Industry
2.4. Supply & Demand Analysis
3. Industry Overview
3.1. Historical market growth estimation in oil industry excluding COVID-19 pandemic effect
3.2. Deviations in the oil industry growth rate due to COVID-19 pandemic
4. Segmentation
4.1. Production
4.1.1. Onshore
4.1.2. Offshore
5. Impact of COVID-19 on major economies
5.1. North America
5.1.1. United States
5.1.2. Canada
5.2. Europe
5.2.1. UK
5.2.2. Germany
5.2.3. Italy
5.2.4. Spain
5.2.5. France
5.2.6. Rest of Europe
5.3. Asia-Pacific
5.3.1. China
5.3.2. India
5.3.3. Japan
5.3.4. Rest of Asia-Pacific
5.4. Rest of the World
5.4.1. Middle East & Africa
5.4.2. Latin America
6. Company Profile
1. BP p.l.c.
2. Chevron Corp.
3. China National Offshore Oil Corp. (CNOOC Group)
4. China National Petroleum Corp. (CNPC)
5. ConocoPhillips Co.
6. Equinor ASA
7. ExxonMobil Corp.
8. PJSC LUKOIL
9. PJSC Rosneft Oil Co.
10. Saudi Arabian Oil Co. (Saudi Aramco)
11. Royal Dutch Shell PLC
1. Global Onshore Oil Industry Research and Analysis, 2018-2025 ($ Million)
2. Global Offshore Oil Industry Research and Analysis, 2018-2025 ($ Million)
3. North America Oil Industry Research and Analysis 2018-2025 ($ Million)
4. Us Oil Industry Research and Analysis, 2018-2025 ($ Million)
5. Canada Oil Industry Research and Analysis, 2018-2025 ($ Million)
6. Europe Oil Industry Research and Analysis, 2018-2025 ($ Million)
7. UK Oil Industry Research and Analysis, 2018-2025 ($ Million)
8. Germany Oil Industry Research and Analysis, 2018-2025 ($ Million)
9. France Oil Industry Research and Analysis, 2018-2025 ($ Million)
10. Spain Oil Industry Research and Analysis, 2018-2025 ($ Million)
11. Italy Oil Industry Research and Analysis, 2018-2025 ($ Million)
12. Rest of Europe Oil Industry Research and Analysis, 2018-2025 ($ Million)
13. Asia Pacific Oil Industry Research and Analysis, 2018-2025 ($ Million)
14. China Oil Industry Research and Analysis, 2018-2025 ($ Million)
15. Japan Oil Industry Research and Analysis, 2018-2025 ($ Million)
16. India Oil Industry Research and Analysis, 2018-2025 ($ Million)
17. Rest of Asia Pacific Oil Industry Research and Analysis, 2018-2025 ($ Million)
18. Rest of World Oil Industry Research and Analysis, 2018-2025 ($ Million)
1. Global Oil Industry Trend Pre And Post COVID-19, 2018-2025 (%)
2. North America Oil Industry Trend Pre And Post COVID-19, 2018-2025 (%)
3. Europe Oil Industry Trend Pre And Post COVID-19, 2018-2025 (%)
4. Asia Pacific Oil Industry Trend Pre And Post COVID-19, 2018-2025 (%)
5. Rest of World Oil Industry Trend Pre And Post COVID-19, 2018-2025 (%)