GETTING THE MIX RIGHT FOR BETTER PROFITABILITY

ACCORDING to the EIA’s most recent forecasts, global oil consumption will average 92.6 million bpd in 2020, down 8.1 million bpd from 2019. This decline comes from reduced travel and diminished industrial activities due to the COVID-19 pandemic. While the decline in consumption has been immediate, the production and distribution chains (extraction, separation, transportation, storage, blending and refining) unwind at a much slower pace. Decisions to cap wells are not taken lightly, because shuttering productive sites can result in a complete loss of unrecovered reserves once a well is capped. Today, almost 100 different countries produce oil, and for many, […]