As a result of the COVID-19 pandemic, 2020 will go down as one of the most challenging periods in the planet’s history, with most industries suffering severe disruptions and significant economic losses. While signs of rebound are beginning to dot the horizon, the fact that the COVID-19 pandemic still rages makes it impossible to predict when we might see any kind of return to normalcy.
While the gas compression industry is no stranger to downturns, most agree that none have been as severe and as unpredictable as this one. Travel restrictions have wreaked havoc on supply chains, equipment maintenance, and the ability for in-person collaboration on new product development. Safety measures implemented to ensure the health and wellbeing of workers have impacted already strained bottom lines. Companies large and small are reeling from the impacts of the COVID-19 pandemic and adjusting their playbooks in real time as the situation constantly changes.
“This was a tough quarter and the COVID-19 dynamics continue to evolve with global cases rising,” said Larry Culp, GE’s chair and CEO during the company’s second-quarter earnings call. “We acknowledge that the full duration, magnitude, and pace of this pandemic across our end markets operations and supply chains is still unknown. The macroeconomic environment could deteriorate further before it recovers.”
“Unlike prior downturns, where the impact to the compression business lagged drilling and completion services, we saw an immediate impact from our customers’ request for price concessions, returning units, and shifting units from operating to standby,” said Brady Murphy, president of CSI Compressco during the company’s second-quarter earnings call. “In turn, we took immediate actions across all fronts and acted quickly and decisively on what we can control. As we move into the third quarter, the macro environment remains uncertain due to…”
This article appears in the September issue of Gas Compression Magazine. You can read the entire article right now by clicking the link above.
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