Oil Gas GineersNow May2020 COVID-19, coronavirus, oil price, fuel chemical drilling exploration offshore onshore petroleum petrochemical refinery upstream downstream energy oilrig

and Gaza all have also reported COVID-19
infections.
The capability and means to contain the virus,
while important without a doubt, will ultimately
depend on the strength of the public health
systems of those countries. As a general rule,
lower prices are good for countries importing
oil and bad for countries in the business of
oil importation. An easy way to get a sense
of the size of the real income effect is to
multiply the difference between production
and consumption (net oil export) as a share of
GDP by the percentage point increase in the
oil price. For instance, based on a hypothetical
assumption that oil prices were to stay 48%
below the 2019 level, Kuwait – where net oil
exports account for 43% of GDP – would
experience a decline in real income of about
20% of GDP. For the same increase in price,
Morocco would experience an increase in real
income equivalent to 3% of GDP.
That having been said, in affecting the oil
industry, the coronavirus has set off a series
of chain reactions that have been affecting all
other industries, mainly those that depend on
the oil industry’s gains and services. However,
due to the emergence of COVID-19 fighting
technologies and medicine, who could know
for sure when this whole thing will subside and
give way to normalcy once again.
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