The oil and gas industry has cycled through lots of upturns and downturns throughout its history. Last spring, however, operators found themselves wondering if they were facing another bust or approaching the edge of a cliff. Producers are accustomed to sudden and severe changes of fortune, but not on the scale nor at the speed seen in 2020. Events far beyond the control of oil and gas companies have stressed the industry in unprecedented and unimagined ways. But as it always has, at some point, the downturn eventually will become an upturn. With a new year around the corner, there are reasons for optimism, not least of which is the development of COVID-19 vaccines and gradually improving economic conditions. It is important to acknowledge a few facts. First, the oil and gas sector is built for resilience. Uncertainty is baked into the business model, so most companies plan for cyclical periods of optimism and pessimism. If any industry knows how to deal with disruption, it is this one. That is partly because operators are adept at leveraging technology to overcome business challenges. That bodes well for oil and gas companies as they start their recovery efforts. Top-flight technologies and operational best practices strengthen the upstream sector's ability to cope with volatility and light the way to a better future.
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