Oil majors and Refineries continue to be in a logjam as lock downs slash demand for fuel.

Many are reducing runs, choosing not to restart after maintenance shutdowns, bringing their maintenance forward or simply closing to offset the impact of falling demand for oil products.

While crude prices are at levels that one could never see again in a life time,demand has come down by over 80% due to the lock downs.

The Oil majors in India IOCL,BPCL and HPCL with their spirited Leaders and Officers, despite the unprecedented constraints,have done a fabulous job of ensuring LPG supplies, notwithstanding the 'increased demand of LPG',without resorting to closure at this point.

The Government also chipped in with free LPG cylinders next few months for the 80 million PMUY and Ujjwala consumers.

All Indian Refineries are currently forced to operate at significantly low capacities with 'challenges' of managing

-Quarantining and social/physical distancing measures for resources working within refineries

-Non available Contractors' work forces, who are a necessity for maintenance and project works at Refineries

-Safety, technical and maintenance issues,due to Units operating at lower rates.

-Storage Tank capacities which are overflowing and choked across the globe

It has not been easy for these Refining majors to continue production - a few in the USA have shut down completely.

Lock downs across the globe are obviously stopping consumption and demand.Storage started filling up,traders had but no choice but to go to ocean-going tankers to store crude in the hope of better prices ahead.

Once the hoarding and storing gets filled up and demand doesn't pick up, countries will have serious problems. Compounding to the chain of problems is the Shipping costs,which is surging to unbelievable levels as there are simply no tankers.

It is not going to be easy for anyone if the pandemic is not contained and lock downs are not lifted immediately and especially in specific sectors where risks are relatively low.

India's two wheeler's consume over 61% of total sales followed by cars at 30%.It is quite obvious that people may switch from public transport to personal transport post lock down ease and this will see a gradual up tick of gasoline consumption.

With several Oil Majors in the Country in the midst of planned capacity expansions and new green field projects,this pandemic and its unprecedented repercussions has created a need to rework the economics of these projects.The last week has seen a few Oil Majors resume work on select expansion projects and most are gearing up to ramp up operations post-lock down.

India is a key driver,important for Global oil demand growth since the last two decades.A downturn can materially shift the global production-consumption balance and price factors.India's Oil demand Growth was set to outpace China in 2020, grow faster than that of any other major economy.India accounted for 15 per cent of all the growth in petroleum consumption worldwide over the last decade next only to China.

While its economic revival is vital for the above reasons, the corona crisis is adding to the uncertainties, the global oil industry faces as it contemplates new investments, adaptations of new technologies,rapid Digitilization and new business strategies.

A shift,a transition from " Oil and Gas "to "Energy " focussing on Renewables,Low carbon electricity,natural gas may be the next order for the Indian and Global Oil majors.