Jo Friedmann is a Senior Analyst on the Rystad Energy Oilfield Service team and he specializes in the global offshore rig and oil service market. He holds a Master’s degree in Economic Analysis with Research Distinction from the Norwegian School of Economics, including exchange programs at Yonsei University, the University of Melbourne and a one-year programme in Mathematical Sciences from the Norwegian University of Science and Technology. Jo has been working at Rystad Energy’s corporate headquarters in Oslo before joining the company’s Singapore office.
The recent surge in COVID-19 cases is stifling the once prophesised V-shaped recovery in oil demand. Over the next months, there is a risk of higher volatility as more supply is expected to hits the market and demand recovery fails to keep pace. In the current low oil price environment, operators are feeling the pressure to find tangible cost-saving opportunities to ensure that their future work remains economical. Another concern arising in front of operators is if profitability of producing fields will degrade to such an extent that prematurely shutting down ageing fields will prove to be the most rational decision.