Economic Report 2020

ECONOMIC REPORT 2020

Report at a glance

Impact of COVID-19:

The impact of the pandemic has resulted in a 4.4% fall in global GDP

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2020

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1920

UK GDP is expected to fall by 11.3% , the largest decline in 300 years

UK total energy

2020 global oil demand expected to total 91.3 million bpd, down 8.8 million bpd on 2019, resulting in severe oversupply and price volatility

demand was down 12% in the first 3Qs of the year

Global energy demand is expected to decline by 5% in 2020

Global gas demand expected to fall by 4% in 2020 - the largest annual decline in history

Global upstream investments expected to decrease by 40% to $300 billion this year compared to 2019

Brent crude averaged $41/bbl YTD — $23/bbl lower than 2019

UK Oil and Gas Performance:

Six exploration wells spudded in 2020, the lowest on record

However, at the start of 2020 there were over 135 E&A projects identified in company plans through to 2025 , at varying stages of drill probability

UKCS production is expected to remain around 2019 levels of almost 1.7 million boepd - despite the many challenges brought on by the pandemic

The UK met 61% of oil and gas demand from indigenous resources in 2019 61%

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At the start of 2020 there were more than £35 billion of capital investment opportunities in company plans over the next decade, with varying probabilities of progression

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