PE - The Oil Industry's 2021 Outlook Looks Bleak
The oil industry entered 2020 with the wind seemingly at its back. Crude oil prices were in the $60s, fueled by the view that demand growth was on track to accelerate. That outlook had many oil producers planning to drill more wells so that they could capture higher prices.
However, like a punch to the gut, the COVID-19 outbreak knocked the wind completely out of the oil industry earlier this year as government restrictions on business and travel pushed demand off a cliff. While consumption has improved from the initial collapse, it's not rebounding as fast as many forecasters previously expected. The sector faces a long road to recovery.
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