Evaluating IP Assets: Practical Considerations for Today’s Oil and Gas Companies
The COVID-19 pandemic has caused global industrial slowdowns and travel restrictions resulting in an unprecedented and rapid decline in the global demand for oil. Coupled with the failure of the OPEC+ producers and Russia to negotiate a production cut in February/March 2020, this rapid decline in demand resulted in an oil supply glut that sent prices spiraling downward. Ultimately, in April 2020, May futures for West Texas Intermediate crude — the U.S. standard oil price — turned negative for the first time in history.
Facing severely depressed oil prices and the uncertainty surrounding future demand for oil, operators and large companies in the petrochemical industry have responded by cutting capital and operational expenditures. Such cuts trickle down to all aspects of the oil and gas industry — from drillers, to service companies, to equipment manufacturers.
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