Originally published on wfmj.com
A global pandemic and an economic recession have shaken the oil and gas industry. Adam Ferrari comments on how companies must effectively react to the decreased use of fuel and the ever-changing digital market.
El Segundo, CA – After an economic collapse and the loss of a large number of jobs across the oil industry, many are worried about the outlook of the oil and gas industry in 2021. As the world prepares to get back to normal after a COVID-19 vaccine becomes more accessible to Americans, the choices these oil and gas companies make towards essential travel, gas production, and digitally accessible business structures will be crucial in determining how oil and gas will succeed in a post-virus world.
The oil used for air travel has seen a decline like never before as the number of passengers going through TSA security checkpoints has been reduced by 40% since the beginning of the pandemic. There are fewer flights domestically, and the increase in flights in 2021 will only grow as COVID-19 numbers decline.
Many business plans have adopted a remote design and are opting for various tools which allow workers to engage remotely vs the tradition method of in person collaboration and meetings. These changes have drastically reduced the demand for transportation fuels.
Furthermore, it may be essential for new potential investors to be assured that the prospective company is willing to adapt to a business climate where more rigid environmental standards are the norm. Not only will this gain the interest of certain long-term investors, but it will also propel oil and gas companies into the newer technologies available for minimizing the environmental impacts of operations.
Research suggests that 70% of jobs that have been lost during the pandemic may not come back by the end of 2021. Many businesses are looking for new models and a digital work interface. Technology has only become more and more critical. As many companies have had to cling to an online market, it is essential to be up to date with the latest technology and internet resources. Business models with strong digital accessibility are more likely to succeed in a post-COVID-19 world.
While America is trying to control another outbreak of the coronavirus, other countries are returning to oil consumption levels seen before the coronavirus crisis, including China and Japan, the world’s second and fourth-biggest oil consumers. Once the United States rolls out the vaccine, gas prices may return to business as usual. Until then, invest in the best business practices and bounce back stronger than ever before.
About Adam Ferrari
Adam Ferrari is the founder of the mineral acquisitions company Ferrari Energy. He is a chemical engineer by degree and is an accomplished petroleum engineer by profession. He also has experience in the financial sector through his work at an investment banking firm. Under his leadership, his company has supported numerous charitable organizations, including St. Jude Children’s Hospital, Freedom Service Dogs, Denver Rescue Mission, Coats for Colorado, and Next Steps of Chicago.