Impact of COVID-19 on the Global Wireline Services Market
The COVID-19 pandemic has severely impacted the global economy, adversely affecting various sectors, including oil & gas and energy. The majority of the countries across the world, such as China, India, the US, and the UK, have imposed lockdown restrictions, which have resulted in the disruption of supply chains and business operations, leading to a decline in demand and supply of oil and gas across the world. Moreover, the lockdown restrictions in several countries have not only impacted the supply chains of raw materials and goods but also hampered the exploration & production of oil and gas due to the shutting down of operational sites. Therefore, the global market for wireline services has been negatively impacted by the COVID-19 outbreak. Additionally, the providers of wireline services, along with the overall oil & gas industry, are projected to face several challenges as several projects are at a standstill owing to the supply chain disruptions, production shutdown, unavailability of workers, and cash flow constraints.
Moreover, the pandemic also resulted in financial losses to the oil & gas exploration companies due to a decrease in the demand and supply of oil and gas in the global market. According to the BP Statistical Review of World Energy 2020, the global production of oil had reduced to 95,192 thousand barrels per day (TBPD) in 2019 as compared to 95,254 TBPD in 2018. Furthermore, the oil price crash and uncertainty regarding government policies and measures across the world have also dealt a devastating blow to the global oil & gas industry. All these factors are likely to affect the wireline services market in the coming months.
World Liquid Fuels Production and Consumption (Million Barrels/Day)Additionally, as the pandemic has impacted the oil & gas sector, the global players are focusing on the development of preventive measures and new business models to address the situation in the global market.
Source: U.S. Energy Information Administration and Short-Term Energy Outlook, May 2020
Source: Primary Experts, Secondary Sources, and MRFR Analysis