First oil

It is hard to know where to begin, in reviewing all that has happened over the last month, regarding either the Coronavirus or the oil price collapse. Both events have altered the pace of life and business considerably for many countries, as well as the global E&P industry. As of early April, there were indications that the Coronavirus was beginning to peak and flatten its exposure curve in several countries, including parts of the U.S. But “stay at home” orders would likely remain in many countries through at least the end of April.

As for the oil price crisis, the OPEC+ group held an emergency video conference on April 9 and reached a deal to cut 10 MMbopd from their output, starting May 1. However, that pales, when compared to demand loss up to 35 MMbopd globally. Oil traders were not impressed, as the WTI price actually fell $2.33, to $22.76/bbl. An April 10 G20 meeting seemed to help close the deal.

In the meantime, oil market conditions have doubtlessly changed the way that the industry conducts some of its business. Here, at World Oil, ongoing conditions have prompted us to make some significant changes that we had expected to implement a little farther down the road. Nevertheless, over the past couple of years, World Oil has prepared the ground for, and invested in, our digital offerings and how we deliver our content.

Accordingly, we will now deliver all content through digital platforms, starting with the April 2020 issue—please see Publisher Andy McDowell’s letter to readers, inside the front cover. Thus, if you are reading this issue, it was delivered to you digitally. Be assured, you will continue to experience the high-quality content for which World Oil has been known for 104 years. Readers and subscribers can still expect: Technical content and case histories; breaking news alerts and technological advances published online; 25+ e-Newsletters per month; access to industry-leading thought leadership presentations; and an ability to attend upstream events and award programs hosted by World Oil.

Import tariff survey results. Speaking of content, one of the recent special coverage efforts that we are proud of is our Survey of U.S. Readership on a Potential Import Tariff. As the double-whammy of Coronavirus and depressed oil prices ravages the upstream industry, there have been increasing calls for some kind of U.S. government intervention.

To gauge the appetite for such action, we surveyed our U.S. readership on this question and several related points. Unsurprisingly, when asked if they want the Trump administration and/or Congress to take significant remedial action, 61.7% said “yes,” and another 24.7% were “unsure.” (See this link: https://www.worldoil.com/news/2020/3/23/world-oil-survey-results-us-industry-favors-strong-government-action). Similarly, when we asked U.S. readers if they favor the federal government installing a tariff, duty or import fee (tax) on all imported oil, 53.1% said “yes,” and 13.3% were “unsure.” (See this link: https://www.worldoil.com/news/2020/3/24/world-oil-survey-us-industry-prefers-some-form-of-import-tariff).

Ironically, if one listens only to API’s public statements on these subjects, the casual observer might think that the entire oil and gas industry was against any sort of U.S. government action. One might think that the industry overwhelmingly wants to leave the matter entirely to the so-called free market to resolve. Our survey results indicate otherwise.

Doing the right thing. Congratulations to United Airlines and Delta Airlines for making one of the best common-sense decisions that this editor has seen any U.S. corporations make. Early this month, within a day or two of each other, United and Delta announced that they would both extend the current status level of frequent flyer members for another extra year, all the way to January 2022. Given that almost everyone will likely not make trips for perhaps another three months, this move is the right thing to do.

About the Authors

Kurt Abraham

World Oil

Kurt Abraham kurt.abraham@worldoil.com