COVID-19 Updates – Industry response and impact
Last updated: 27 May 2020
Impact on operations
Oil & gas operations and supply are not directly impacted for the time being.
While there have been cases of workers affected by COVID-19, including on offshore installations, our Member companies have procedures in place to isolate and evacuate personnel should screening procedures or testing fail to identify affected employees.
Other preventive measures are also put in place, such as downsizing non-essential operations and the number of personnel present on site kept at minimum level, in order to safeguard the safety of the workforce while maintaining energy supply.
IOGP monitors the situation through regular contact with national oil & gas industry partners (companies and trade bodies).
Production keeps going despite the current sanitary situation and market conditions – this is no easy feat.
There is good collaboration between government and industry in the different producing countries to make sure operations are maintained, with no incidents offshore.
Companies are affected, some more profoundly than others. From 2019 to 2020, depending on countries and areas, capital expenditure is being slashed by 20-30% and could even drop between 40 to 50% in certain areas. It’s still too early to have a comprehensive view.
This is already directly impacting the whole supply chain: for many of the supply chain companies, the loss of activity will have a very substantial impact: Some construction yards are losing 70% of their workload, engineering around 60%.
Oil storage is filling up fast at global level, with demand down around 20% in March-April (estimate), while supply still remains higher.
The lessons of the 2014 crisis have helped soften the blow. The impact on the industry would be worse without the efficiency gains made in the past few years, including thanks to IOGP’s work on standardization.
The industry is considering 3 stages of action: Immediate, recovery and then looking ahead.
Economy and security of supply are back on top of the agenda, with climate still close behind. We strongly believe CCS must be part of any exit strategy looking to direct funds to sustainable technologies.
IOGP helps harmonise its Members’ responses through information and learnings sharing, and helps Members progress on specific issues. Whilst many of our members work globally, IOGP helps them gain national insights as the situation evolves.
Below is a brief summary of our Committee work. For more information on this drop us a line with your questions and we’ll get back to you as soon as possible.
- Started meeting at earliest stages of the COVID-19 crisis, and sharing information on travel restrictions, quarantine, controlling infections and other relevant measures.
- The Committee began by looking into issues such as testing (onshore or offshore), social distancing (how do we deal with it in practice) and now looks into mental health aspects (longer term effects of prolonged rotations and their mitigation).
- Looks into ways to transport affected or infected people.
- Since helicopter are commonly used, specific questions arose: how to achieve social distancing in a helicopter, how to protect the pilot, how to disinfect the helicopter. All issues are addressed in a risk-based manner.
- Looks into risk assessments by sharing companies’ inputs, the effect of the whole supply chain behind the platforms (food, transport, trainings are needed; equipment needs to be maintained and certified).
- Short term actions have been taken. The Committee is now looking 3-6 months down the road as the situation is expected to last quite some time.
Our Members’ response to Covid-19
The list of companies and initiatives is not exhaustive – we do our best to keep this list up to date.
Should you wish to list your company initiative, contact us at firstname.lastname@example.org.
Baker Hughes is engaging with communities globally, and locally, to support the fight against COVID-19:
- In the United States, Germany, Scotland, Italy and Saudi Arabia, Baker Hughes is beginning to engage with local hospitals, industrial consortiums and partners to print hundreds of face shield pieces and other high-demand medical equipment.
- Baker Hughes is gathering and donating personal protective equipment (PPE) to local healthcare facilities, including thousands of face masks and goggles.
BP is supporting essential services, elderly and vulnerable citizens staying at home in the UK during the current COVID-19 pandemic:
- The BP Foundation will donate $2 million USD to the WHO’s COVID-19 Solidarity Response Fund, which supports medical professionals and patients worldwide by providing critical aid and supplies. The Solidarity Response Fund also helps track and understand the spread of the COVID-19 virus and supports efforts to develop tests, treatments, and ultimately, a vaccine.
- In the UK, from 21 March, BP is providing free fuel to emergency services ground transport vehicles. This includes charging of electric vehicles through BP Chargemaster. From 1 April, BP supplies free jet fuel to air ambulance services.
- BP is offering free delivery of food and convenience goods from many of its UK retail sites to help those who have been advised to minimise social contact.
Chevron operates in many parts of the world and sees the effects COVID-19 is having on communities where its employees live and work. During this unprecedented time, the company is committed to protecting its customers, supporting its workforce, helping those affected in the communities where it operates, and supporting healthcare workers on the frontlines of the pandemic.
- Maintaining a Health Workplace: Chevron continues to take steps to connect employees with resources that support their health and well-being, such as offering alternative work schedules, virtual health visits and mobile app access to various HR services where possible. It has also expanded mental health services via secure video, confidential consulting services and online resilience programs.
- Protecting Customers: It is committed to providing customers with quality fuels and products in a safe environment. Its Chevron app lets customers pay for fuel right from their vehicle.
- Supporting Communities: Together with its global partners, Chevron is enacting a series of social investment and support initiatives to help communities and non-profits address the COVID-19 crisis. In the U.S., more than $2 million has been donated to local relief efforts in several states, with an additional $2 million to match 2:1 employee contributions to U.S.-based non-profits. Outside the U.S, it is working with global partners on a variety of initiatives, such as helping to fund emergency services in remote parts of Western Australia and providing medical supplies to hospitals in Thailand. To date, it has committed more than $12 million around the world to COVID-19 response efforts.
Learn more about its efforts here.
ConocoPhillips is taking steps to support and sustain its global workforce, communities and health care professionals during the coronavirus pandemic by donating much-needed relief aid, food and medical supplies to area hospitals and first responders, while continuing to deliver the oil and natural gas that is essential to keep society running:
- $300,000 USD donated to procure life-saving medical supplies and support front-line medical personnel in Wuhan, China.
- More than 3,000 lbs. of food delivered to food banks and missions in Houston, Texas and Bartlesville, Oklahoma.
- 6,500 respirator masks donated to local area hospitals and first responders in Houston, Texas; Casper, Wyoming; and Riverton, Wyoming.
- 6,000 pairs of medical exam gloves donated to medical centres and first responders in Odessa, Texas; Andrews, Texas; and Casper, Wyoming.
- 100 pairs of safety and reading glasses donated to first responders in Casper, Wyoming.
- Dozens of lunches delivered to the staff at Stavanger University Hospital in Norway.
- Gloves, visors and protective masks donated to the staff at James Cook University Hospital in Middlesbrough, U.K.
- $25,000 donated to Camp Fire Alaska for emergency programme services benefiting local children of active duty and deployed military personnel and $10,000 to the Children’s Lunchbox for meals to youth in low income neighbourhoods.
- 500 personal hand sanitisers for area first responders Karnes and DeWitt, Texas.
- Employee volunteer Connie Carter donated her time to make 100 cloth masks for local nursing home residents in Watford City, ND.
- ConocoPhillips Chinese American employees purchased a secure shipment from China and delivered 4,500 masks and 200 protective gowns to several Houston hospitals and first responders.
- Eni has partnered with the Fondazione Policlinico Universitario Agostino Gemelli IRCCS to set up the “Colombus Covid 2 Hospital” in Rome. The Hospital is exclusively devoted to treating patients suffering from coronavirus and became operational on 31 March. As part of the same project, an Emergency Room for patients suffering from coronavirus will be set up inside the Gemelli Polyclinic.
- In Milan, Eni is working with Ospedale IRCCS Luigi Sacco to set up a new Emergency Room devoted to infectious diseases.
- In Pavia, Eni is helping set up a high-level isolation unit inside the infectious diseases department of Ospedale San Matteo.
- Together with IRCCS Policlinico di San Donato, Eni is ensuring the provision of medical equipment such as monitors for resuscitation units and personal protection equipment.
- Eni is funding public information campaigns.
- The company is in the process of finalising its partnerships with CNR Institute for Complex Systems and with Istituto Superiore di Sanità to use the calculation and modelling capability of its HPC5 supercomputing system for medical research related to infectious diseases.
- Eni has so far allocated €30 million to the fight against coronavirus.
In addition to continuing to safely and efficiently produce the energy society needs, ExxonMobil helps support the fight against Covid-19 through donations of medical supplies, support for impacted communities, and ramping up the production of feedstock used in hand sanitisers. Examples include:
- ExxonMobil is using its experience of polymer-based technologies to work with the Global Center for Medical Innovation to rapidly redesign and manufacture reusable personal protection equipment for health care workers, such as face shields and masks.
- In the US, the Baton Rouge plant is maximising production of isopropyl alcohol (IPA), a key ingredient in hand sanitiser, so it can continue to provide it to the customers and areas that need it most such as the state of New York. ExxonMobil is also supporting local communities facing economic hardship due to Covid-19 by helping provide 1 million meals to Houston-area residents through $250,000 in contributions to local food banks, and donating $100,000 to the West Texas Food Bank. In New Mexico, ExxonMobil has donated $100,000 to support online education for low income students in remote locations with limited access to the internet.
- In Europe, ExxonMobil has donated IPA to help produce hand sanitiser for hospitals, nursing homes and first responders in Belgium. The SARPOM refinery in Italy has made a financial donation to help local community hospitals acquire key medical materials. While in France the Gravenchon plant has supplied bottles needed to package and transport medical hand sanitiser.
- In China, ExxonMobil provided $200,000 to the China Charity Federation to assist in COVID-19 relief efforts, supplied of lubricants to emergency response organizations, and donated medical supplies to impacted communities, including 48,000 masks and 4,300 sets of protective clothing.
PGNiG provides widespread support for different vulnerable groups affected by the coronavirus pandemic:
- To support local communities in the regions of PGNiG operations, PGNiG has donated over EUR 1.5 million to hospitals fighting against COVID-19 for purchase of the necessary equipment such as ventilators and respiratory equipment as well as personal protective gear for hospital staff.
- PGNiG helps other public institutions, such as the National Health Fund, by delegating several dozen employees to work at the coronavirus hotlines, financing video information hotlines on coronavirus for the deaf as well as by sponsoring of the educational TV programs for children that stay at home while schools are closed.
- The company has launched various measures dedicated to its clients, namely: temporary suspension of overdue payments collection from its client, strengthening online channel of communication with clients while closing Customer Service Offices.
- Wherever feasible PGNiG facilitates its employees to work remotely. For others, additional health and safety measures have been introduced, including implementation of special work organisation and providing additional personal protective equipment.
Repsol shows its support by implementing a range of initiatives aimed at contributing to the fight against the Coronavirus pandemic:
- Repsol is donating personal protective equipment and sanitary clothing to hospitals, emergency services, police, and fire fighters in Spain and other countries where it operates, particularly Portugal and Bolivia.
- The company is donating different polyolefin grades to various entities and companies for production of face screens, masks, and gowns.
- At its Technology Center in Madrid, it produces 10,000 l/week of hydro-alcoholic sanitary gel to donate to hospitals in Spain. Repsol has purchased and donated disinfectant gel to local actors in Indonesia and Ecuador.
- The company has temporarily donated an automatic PCR machine to perform COVID-19 tests and a portable respirator to hospitals in Spain. It has donated funds to purchase medical equipment and respirators in Peru. It has made a donation to support the construction of a temporary field hospital in Rio de Janeiro, Brazil, and given power banks and charging stations to a temporary field hospital in Madrid.
- Repsol’s service stations in Spain offer cheap menus, free coffee and buns, and access to toilets and showers to truck drivers, professionals of the armed and security forces, and emergency and health service workers. At the industrial complexes it donates picnic baskets to truck drivers.
- Repsol contributes food to indigenous communities, vulnerable families, orphanages, etc. in areas where it operates in Ecuador, Peru, and Malaysia.
- The company is organising a solidarity campaign with the Red Cross where employees can make donations. The Repsol Foundation will make an additional financial contribution.
Safety is a core priority for Schlumberger, it embraces a safety mindset and build it into how it works. It has taken a proactive approach to COVID-19 outbreak response, quickly implementing a comprehensive outbreak management plan and adapting its work practices.
In addition to initiatives at its sites and offices— it also has initiatives that are contributing to the safety of the people in the communities where it works.
Visit its COVID-19 webpage for full details of its outbreak response, which includes:
COVID-19 Management Practices
Schlumberger has publicly shared its new COVID-19 Management Standard which guides work practices to help continue to operate safely around the world. Schlumberger has made these documents available on its public website, along with a number of supporting procedures, flowcharts and communications materials to help promote the sharing of safety best practices related to COVID-19 management.
- Resources to improve information management and promote engagement
- A practical approach designed to reduce exposure
- Geography-specific preparations designed to meet local jurisdictional requirements
- Tools for business continuity plans
Supply chain continuity
- Ongoing supply chain risk assessment, operations impact assessment, and development of potential mitigation measures, including alternative suppliers
- Specific risk analyses for extended product and spares lead times, increased product cost, and supply disruption
- Potential supply chain impact assessment for supplier changes to delivery dates, delays due to port congestion, and transport (air/ocean/trucking) quarantine requirements
- Project delay communications on a case-by-case basis
- Workforce footprint reduction enabled by remote operations
- Risk-based travel and alternative routing for field crews
- Conditions-based maintenance for tool and equipment integrity
- Business continuity plans to enable HQ operations support
Schlumberger’s global stewardship commitment shows a long tradition of contributing to the communities where the company live and work. The COVID-19 pandemic has presented many opportunities to demonstrate that commitment. Across the globe, Schlumberger teams are putting their skills and expertise into action to support front-line responders, healthcare professionals, and the wider community by manufacturing hand sanitizer and PPE. Some examples of these projects include:
Shell is prioritising the safety and health of its people and customers, and is preparing a global response to COVID-19:
- Shell is increasing the production of isopropyl alcohol, a key chemical ingredient of hand-sanitising liquids. Shell’s manufacturing plants in the Netherlands and in Canada are diverting production resources to make isopropyl alcohol. In the Netherlands, the company is making 2.5 million litres available free of charge for the healthcare sector.
- From 26 March, in more than 15,000 participating retail sites across 30 countries, Shell is providing free food or drink to health-care professionals such as nurses and doctors, as well as truck drivers and the delivery people who are vital to maintaining supplies.
- In Germany, Shell set up a new supply chain within two weeks to help secure hand sanitiser for hospitals. In the first wave of deliveries, Shell donated 700 tonnes of bioethanol and separated it into manageable container sizes.
- Shell has been helping to develop face protectors for medical staff. The adjusted snorkel masks cover the face fully and are connected to a medical filter by a part that is being produced using the 3D printers at the Shell Technology Centre Amsterdam.
Total is supporting French hospitals and healthcare staff mobilised in the fight against COVID-19 by supplying free fuel vouchers, and through the Total Foundation:
- Total Group will provide hospitals with gasoline vouchers worth up to €50 million that can be used at Total stations.
- The Total Foundation will mobilise €5 million in favour of the Institut Pasteur, and hospital and health associations involved in the fight against COVID-19.