COVID-19 is a global crisis, evolving at unprecedented speed and scale. Business leaders must make rapid decisions, and take immediate actions, to protect and support their workers while ensuring that critical business operations continue.
For the oil and gas industry, part of Accenture's Energy industry practice, COVID-19 is causing a demand-side shock that’s still rippling through the global economy. Alongside, the industry faces an even more significant supply side shock from OPEC+. A dual shock like this is unprecedented for the industry.
The near-term impact on the industry can be devastating – many companies faces an existential risk. We expect the industry to be reshaped in a structural way.
The immediate response of most oil and gas companies is to ensure the safety of its workforce and continuity of operations. Beyond that, many are announcing broad capital and discretionary spending cuts. Those are needed in the near term. However, the industry needs to recognize that both this cycle and the post-cycle will be different, and that requires taking measures that enable survival in the near term and positioning to thrive in the medium term.