There may be more disruption taking place in the oil and gas industry today than at any time in the past 100 years. COVID-19 caused such a disruption in oil markets that oil futures prices went negative for a few days this spring as storage around the U.S. filled to the brim. Petroleum products supplied in the U.S. dropped a whopping 23% in April and might be down for the remainder of 2020 as office workers stay home and reduce their commutes.
The impact on a company like Phillips 66 (NYSE: PSX) could be profound over the next decade. Economic shutdowns and working from home may not last for most workers, but I think oil consumption patterns are changing permanently and even small changes may not be good for the business long-term.
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