Impact of COVID-19 on the Global Coiled Tubing Market
The outbreak of the COVID-19 has affected the global economy of various sectors, including the oil & gas, manufacturing, automotive, and power generation industries in multiple ways. The COVID-19 pandemic has disrupted the supply chain of the oil & gas industry and has negatively influenced the exploration and production activities in the industry. The lockdown restrictions have drastically reduced the demand for oil and gas globally¸ as the transportation sector has come to a standstill. Moreover, the disruption in the demand and supply of oil and gas, which has resulted in huge financial losses in the industry¸ leading to job losses and pay cuts. However, according to the BP Statistical Review of World Energy 2019, the global production of oil and natural gas increased from 92,502 thousands of barrels per day (TBPD) in 2017 to 94,718 TBPD in 2018, while natural gas production grew by 5.2% in 2018 with 3,677.7 billion cubic meters (bcm) in 2017 to 3,867.9 bcm in 2018. However, the COVID-19 pandemic has been considerably disrupted this momentum. As coiled tubing is necessary equipment in oil and gas production activities, the decline in demand for oil and gas globally has disrupted the demand for the coiled tubing market, globally.
FIGURE: WORLD LIQUID FUELS PRODUCTION AND CONSUMPTION, 2017-2021 (MILLION BARRELS PER DAY)
Furthermore, major oil-producing countries such as the US, Russia, and Saudi Arabia have shown a steep fall in demand and supply of oil and gas, which has led to a significant impact in the global oil & gas market. The effect of the global oil price crash and uncertainty in the policies and measures taken by the government authorities has caused a devastating blow to the global economy, disruption in supply chains along with choking off demand and supply of oil and gas. However, as the market stabilizes, the demand for coiled tubing is expected to resume its average growth rate by early 2021 gradually.
Source: Primary Experts, Secondary Sources, and MRFR Analysis
Source: U.S. Energy Information Administration and Short-Term Energy Outlook, May 2020