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Offshore Oil’s Dramatic Comeback Smack dab in the middle of an oil price crisis caused by an unprecedented demand loss, Exxon announced the latest in a string of discoveries off the eastern South American shore, this time in Suriname. It must have felt like adding insult to injury for OPEC producers and reckless behavior for investors, but offshore oil may yet thrive despite the crisis. During the 2014-2015 oil price collapse, offshore oil drilling was one of the most affected areas. Offshore drilling companies went bankrupt, exploration projects were shelved, and staff was laid off. And then oil companies turned to other ways of cutting costs, such as developing technological solutions that boosted drilling efficiency.
Smack dab in the middle of an oil price crisis caused by an unprecedented demand loss, Exxon announced the latest in a string of discoveries off the eastern South American shore, this time in Suriname. It must have felt like adding insult to injury for OPEC producers and reckless behavior for investors, but offshore oil may yet thrive despite the crisis. During the 2014-2015 oil price collapse, offshore oil drilling was one of the most affected areas. Offshore drilling companies went bankrupt, exploration projects were shelved, and staff was laid off. And then oil companies turned to other ways of cutting costs, such as developing technological solutions that boosted drilling efficiency.
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Is This The World’s Next Major Driver Of Oil Demand? By Irina Slav - Dec 10, 2020, 3:00 PM CST
The energy industry has been plagued by the sharp and deep drop in oil demand for months, and the outlook does not look too good either with or without vaccines. Traditionally, China has been the one bright spot on the global map as the large consumer that is always thirsty for crude. Now, there appears to be another driver of hope for oil demand: Brazil. The biggest country in South America has been one of the most severely affected by the coronavirus pandemic, but unlike other places that suffered mass infections, this has not harmed fuel consumption.