In the wake of the COVID-19 pandemic, oil and gas companies have had to cut production sizes due to the decrease in consumer demands. The coronavirus outbreak compounds the challenges that the industry already faced, including escalating trade strain and worldwide political factors.
"The pre-coronavirus predictions have been emphasized by the spread of the COVID-19 virus on multiple levels. Both commodity and global financial markets have faced disruption, while the demand for energy sources has decreased dramatically. These issues stem from wider macroeconomic and business environmental risks that only add to the foreseen bumps in the road for oil and gas companies during this year," said Ferrari Energy founder Adam Ferrari.
Adam Ferrari was educated as a chemical engineer, graduating magna cum laude. He worked in several companies, where he gained experience in both energy and finance before he eventually decided to establish his own mineral acquisition company, Ferrari Energy, in Denver, Colorado.
The COVID-19 spread adds pressure to the predicted issues facing the industry in several ways.
After the booming market in 2019, economic specialists predicted the market would fall, but not due to an unexpected pandemic. The economy was weakened worldwide by the virus spread as significant players in oil and gas, including the United States, Europe, and China, suffered. Already existing trade tensions escalated with the coronavirus uncertainty resulting in disruptions in long-established supply networks.
Oil and gas companies are having to adapt and overcome multiple obstacles to survive during this crisis. However, the industry's leaders are taking strides to implement new solutions to secure future success.
Experts are suggesting that oil and gas businesses invest in technology. As the rest of the world is leaning towards technology solutions more than ever, it has become necessary for financial recovery.
Technology could help alleviate some of oil and gas organizations' financial woes. Investing in automating processes decreases workforce risk during uncertain times while simplifying business model adjustments. Companies can meet customers' needs by adapting to and providing remote access with cloud hosting. This specific technology offers flexibility in commitment while removing the need for expenses on IT hardware.
About Adam Ferrari
Adam Ferrari is an accomplished chemical engineer and is the founder of his very own mineral acquisition company, Ferrari Energy. With an educational background as a chemical engineer, Adam was encouraged to learn more about minerals and the inner workings of petroleum engineering. Bootstrapping his own business, Ferrari Energy, from the ground up he took on his new venture. In efforts to give back to the community and support organizations in need of contributions he donated to various non-profits in both Denver and Chicago.