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As someone who does business in the offshore helicopter sector, it is no surprise that the oil price crash is a particularly concerning development that I’ve been carefully monitoring. There are two significant factors at play – lowered demand for oil due to coronavirus and the price war between Russia and Saudi Arabia. This “double whammy” is causing many of us to speculate and interpret best and worst case scenarios.
Some of the issues that are circulating discussions include production shut-ins, contract renewals and cancellations from oil companies, reduced investment and utilization rates, practical complications of extracting oil due to Covid-19, global oil storage capacity, and consolidation among offshore helicopter operators.
At this point, it is too early to tell what the impact of this situation will be. The OPEC meeting is rescheduled for this upcoming Thursday. The fact that Saudi Arabia and Russia may restart communications is a step in the right direction. We are all standing by to see how this shapes up and what outcomes this may potentially have on the offshore helicopter market.
An OPEC deal + Update on Offshore Activity Post Covid-19 Measures – Air & Sea Analytics – April 10, 2020
More (or less) oil on troubled waters – Cirium – April 3, 2020
What the oil price crash means for helicopter operators – Helicopter Investor – March 24, 2020
This post was originally published on LinkedIn at https://www.linkedin.com/posts/brad-shaen-international-aviation-marketing_more-or-less-oil-on-troubled-waters-activity-6653355326819102720-8zYN