Originally published on thefinancialcapital.com
Adam Ferrari, founder and CEO of Ferrari Energy reveals further details on the expected progressive recovery of natural gas demand that will contribute to the long-term rebound of the oil and gas industry in the United States.
It has been a tough year for the United States oil and gas industry between the pandemic and oil price war, but with record falls come the opportunity for record rebounds.
Adam Ferrari, an entrepreneur in the gas and oil industry, founded Ferrari Energy, a company that works with land-owners to produce and develop oil and gas and the right to receive royalties. Ferrari said that though the global oil demand fell by a record amount in 2020, the International Energy Agency projected that in 2021 the oil and gas industry w rebound.
The stay-at-home order from pandemic precautions dampened the United States oil demand as transportation usage plummeted. Considered a multi-decade low, the gasoline demand average in April 2020 averaged around 5.33 million barrels per day, a significant drop from the 9.47 million barrels per day in April 2019.
However, with coronavirus vaccines on the horizon, now more than ever, more countries are pushing to return to societal norms. Another national lockdown is being seen and declared as a worst-case scenario, and the oil market prices are now back on the rise.
Jet fuel demand fell by three million barrels per day in 2020, but a rebound is brewing as the oil demand is predicted to rise to one million barrels per day in 2021. People are gradually starting to get back to more means of transportation as more travel opportunities return. The public return to travel is good news for oil and gas companies as the hit on the transportation sector was devastating for oil and gas prices. Eighty percent of crude oil barrels go towards fuel for transportation. However, people are more inclined to choose to drive because of the pandemic rather than taking an airplane.
It is anticipated that low oil and gas prices will motivate another gas use boom in electricity in the summer of 2021. Gas is considered a primary source of power, taking up a total of forty percent.
The International Energy Agency predicts that the total oil demand will not fully recover to pre-coronavirus levels until 2023. In the meantime, oil prices will continue to stabilize in the coming weeks, thanks to the recovering demand for oil along with oil-producing nations and United States companies performing record removal of oil from the market.
About Adam Ferrari
Adam Ferrari was born and raised in the south suburbs of Chicago, IL. He is the grandson of an Italian immigrant coal miner who worked in the mines of Coal City, IL. From an early age, Adam was taught the value and dignity achieved through a hard day’s work. The oil and gas industry provides good-paying jobs for millions of blue-collar men and women across America, and this is one of many reasons Adam and his company are such staunch supporters of the oil and gas industry. Blue-collar men and women built America, and the modern oil and gas industry keeps America moving forward.
Through the successes at Ferrari Energy, the company has been able to give back to various organizations in the greater Denver and Chicago regions, which are both cities that he has taken residence in and maintains strong ties to.