Published by Anthony Di Pizio

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The Pandemic and The Recovery

The COVID-19 pandemic caused widespread global disruption to economies across the globe and the energy industry was not exempt. Prices were erratic, bankruptcies spiked, projects were thrown offline and demand suffered a contraction as entire populations ground to a halt. 

As a result, NatGas prices fell to record lows in the $1.40's/MMBtu (British Thermal Units) which was an acceleration of a cyclical price decline that was already in motion. Combined with uncertainty about the future, this was enough to see many major projects shelved or delayed, for example Australia's largest untapped conventional gas resource Browse, in Western Australia. 

The US Energy Information Administration (EIA) expects prices to rise into the American and European winters of this year, and continue firming in 2021 as a result of reduced production...