COVID-19 vs ASEAN Energy Sector: Oil & Gas (Q2)

Key Points

• The global oil market was striving against the plunging oil demand and crashed oil price due to the spread of coronavirus which stroke many aspects during that time.  The imposed movement restrictions for containing the virus spread contributed to the drop of fuel price and demand. The winding road as an impact of pandemic gives pressure in the oil and gas market. It became a serious challenge to survive amid unfavourable circumstances, such as putting off some projects, cutting output, and tightening financial policy. The current crisis might also act as an energy transition catalyst, thus the oil and gas sector must be able to adapt to provide clean energy.
• Regardless, there is still optimism when the easing of containment measures occurred in many countries which bring some relief in the recovery time. Indeed, the recent lockdown easing in ASEAN countries provides some relief for the oil and gas industry players. As a result of the new normal, the fuel was progressively back in demand. Decision-makers in the region also continues adapting recovery initiatives to mitigate the impact of COVID-19 outbreak. By undertaking relevant recovery policies, the ASEAN member states can continue to cope, and tackle the robust challenges in the short to long-term resulted by the COVID-19 pandemic.