Manufacturing Holds Key to Recovery of Oil and Gas Markets, Revealed at This Week's ADIPEC Energy Dialogue -
"'2008 was much more of a hit to the financial sector and manufacturing. This time it is the reverse. The big question is how quickly consumer demand will come back.'"
Why this is important: Early indicators show that increased manufacturing after the end of the coronavirus pandemic may hold the key to recovery in the oil and gas market. Manufacturing has increased at a greater rate than consumer spending. What is not clear yet is whether oil and gas supplies can, in the short term, remain restricted. Although supply restrictions have remained in place for several months, prices may increase enough to make it practical for shale producers to increase production. Further, certain oil-producing nations are under pressure to ignore production limits in order to increase revenue.
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