On 8 March 2020, the Russia-Saudi Arabia oil price war began. With supply increases and demand reductions resulting from the spread of the coronavirus disease 2019 (COVID-19), global oil prices have plummeted. Many consider oil prices are capable of decreasing even further.
Operators and companies in the supply chain are now facing a triple threat: an oil price war, decreasing demand and a global pandemic. Ensuring the financial stability of both operators and companies in the UK oil and gas supply chain is paramount. The recently issued OGUK Business Outlook 2020 confirmed that the position of the UK oil and gas industry is “paper thin”, and that “significant concerns” exist “about the resilience of the [UK oil and gas] supply chain, especially to absorb further pressure.”