The Coronavirus syndrome is predicted to devalue the oil and gas investments by billions of dollars and push back the schedule of offshore installations currently being erected at Asian Yards as forestalled.
According to industry estimates, due to prevalence of COVID 19, oil and gas exploration could fall below the optimal output by a figure near $30 billion in 2020. Oil prices have receded in the year 2020 by a considerable margin on the back of a lulled economic growth and reduced demand putting a fright in the minds of major oil producers.
This has a cascading effect on the investment cycle of oil producers with restrained investment budgets, especially shale producers in the United States and some offshore exploration entities.
The coronavirus has reached alarming proportions and continues to destabilize all outgoes of oil platforms and associated equipment’s by a long shot due to a lull in staff or supplies and travel hiatus.
Amongst 28 production, storage and offloading vessels being made, 22 belong to China, South Korea and Singapore.
With no convincing date still extended as to when the effects of the epidemic will taper, it is feared that the epidemic will only become even graver in March with it not limited to Chinese fabrication yards. This signals a crisis for the entire global service industry.
As a poignant end, it can be summed up that coronavirus does cast a long shadow on global business. With Chinese economy in disarray, there has been a ripple effect on significant business channels including automobiles, technology airlines and more.