Orlando Alvarez, the CEO of BP Energy, said that the coronavirus pandemic would continue impacting the US natural gas market through 2021. Alvarez said demand for US LNG had recovered beyond pre-pandemic levels. However, reimposed lockdowns might reduce Europe’s imports of US LNG, Alvarez noted. He said that the pandemic could still have a significant impact on oil products which, in turn, could affect oil drilling and associated gas production.
Alvarez said gas market players need to monitor closely the pandemic impact on associated gas production because it could create price volatility. In the backdrop of fluctuating gas market conditions, BP is diversifying its production mix to remain competitive. Alvarez said demand for hydrocarbon is unlikely to disappear in the near term, although renewables will lead the way in the energy transition.
