The energy research firm, Rystad Energy indicated that global E&P revenues forecasted for 2020 will drop by approximately 40% year-on-year. The expected drop equates to a 1 trillion-dollar decline.
According to Rystad, in 2019 E&P revenues were 2.47 trillion and in 2020 it is expected that revenue will drop to 1.47 trillion.
Prior to the coronavirus, revenue for 2020 was expected to be $2.35 trillion in 2020 and $2.52 trillion in 2021. Now 2021 revenues are also projected lower, at $1.79 trillion.
In addition, Rystad Energy previously expected upstream spending to fall about 20% this year as a result of the coronavirus. However, they now expect upstream spending to fall by 25% instead, from $530 billion in 2019 to $410 billion this year.