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July Oil and Gas News Round Up

COVID-19 has affected the oil and gas industry in several ways. With this news round up, we’ll share exactly how the industry is looking amid the pandemic as well as how those working within the industry are finding ways to cope.

US Energy Use Hit a Record Low This Spring, But Natural Gas Tightened Its Grip

With COVID-19 keeping many Americans at home, there has been a significant reduction in travel by cars and planes. Plus, other energy-based industries are also taking hits. In fact, GIZMODO reports that the US’s energy consumption decreased 14 percent in April 2020 compared to April 2019.

However, the natural gas industry has experienced an increase during this time. In fact, the US used 15 percent more natural gas in April of this year compared to last year. GIZMODO believes this is due to the lockdown, meaning more Americans are using natural gas for things such as cooking, warming water, drying clothes, heating, etc.

You can find the article here

Finding Flexibility: Rental, Leasing Companies Provide Solutions During Uncertain Times

COVID-19 has led to tightened budgets with operators, contractors, service providers and other parts of the oil and gas pipeline industry. However, many of them have found rent and leasing of needed equipment a way to work within their new reality. 

In the article, Ralph Petta, president and CEO of the Equipment Leasing and Finance Association (ELFA), said, “There’s a reason nearly eight out of 10 companies lease or finance their equipment. It makes good business sense.”

Read more about the benefits of renting and leasing in the oil and gas pipeline industry here

Oil Prices Finish Higher on Strong Draw

According to an Energy Information Administration report, domestic oil inventories fell by more than 10 million barrels last week. That’s the largest decline since December. Analysis from Bloomberg suggests that oil prices aren’t rallying because of a “growing glut” in gas and distillate supplies. People aren’t driving as much as they usually do during the summer, so the demand isn’t close to what it normally would be. 

Learn more about the report here.

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