In the second half of 2020, the oil and gas sector in ASEAN was still suffering from the plunged consumption and slowed economy as the impact of the COVID-19 pandemic. It will take months, if not years, to resume completely. Several actions were cultivated by ASEAN member states to propel the energy growth in the post-Covid era. As reported in our Q2 Energy Insight, the governments were trying to take adequate measures to overcome these difficult times. Such attempts included providing subsidised gas prices, limiting fuel import, and lowering investment targets. Meanwhile, at the business level, different efforts were implemented to adapt and mitigate the impact of weak oil markets. Although the recovery phase has started, ASEAN oil and gas industries remained cautious for an uncertain outlook.
The recent increase in fuel demand might minimise the profit loss and halted projects in the second half of 2020. However, experts warned that the second wave of COVID-19’s spread could slow down the progress. Uncertainty outlook as the impact of weakening oil market is still making oil and gas industries suffered since the pandemic outbreak in early 2020. The industries must be able to adapt and implement mitigation actions to preserve and curtail from bigger business losses. The efforts could be operational and capital cost-cutting and shaping portfolio to integrate cleaner energy fuel in maintaining revenue and energy security.
After the shock of a devastating period, every sector experienced different trajectories of recovery. In the energy markets, the oil and gas have seen significant improvement since the second quarter, but not yet fully returned to the pre-pandemic condition. Oil and gas industries have rebounded progressively from the bleak period as the impact of the COVID-19 pandemic. However, until the businesses return to normal, they must be vigilant to minimise losses and at the same time maintain energy security for national supplies.