KUALA LUMPUR (Aug 31): The oil and gas industry is experiencing its third price collapse in 12 years but after the first two shocks, the industry rebounded and business continued as usual. This time it is different as the current context combines a supply shock with an unprecedented drop in demand for the commodity and a global humanitarian crisis brought about by the Covid-19 pandemic. Additionally, the sector’s financial and structural health is worse than in previous crises. The advent of shale, excessive supply, and generous financial markets that overlook the limited capital discipline have all contributed to poor returns.
