--- title: "\"Now What?\" - A Conversation on Energy & COVID-19" description: Companies will need to cut spending by 41% in 2020 if oil falls to $35 per barrel. Many are already cutting back. image: https://www.allyenergy.com/hubfs/Imported_Blog_Media/Energy-Market-during-COVID-1-1-p2sgej9u376100pvzsqxwf1q1q9p652eiz6af487m0.jpeg --- - [BUILD WITH US](https://www.allyenergy.com/work-with-us) - [GALLERY](http://ally.photos) [![Company logo](https://www.allyenergy.com/hubfs/MJTW%20Assets/logos/ally-energy-logo-2.svg)](https://www.allyenergy.com/) - [ABOUT](https://www.allyenergy.com/about) - [INSIGHTS](https://www.allyenergy.com/resources) - OUR BUILDS - [Houston Energy & Climate Week](http://www.climateweekhouston.com) - [Energy Workforce of the Future](https://www.energyworkforceofthefuture.com/) - [The GRIT Awards & Best Energy Workplaces](https://www.allyenergy.com/2025-grit-awards-best-energy-workplaces-finalists) - [Energy Capital Markets Day on Wall Street](https://www.allyenergy.com/ally-tcs-worley-new-york-marathon-team) - [THE BEE SUITE™](http://www.thebeesuite.com) - [THE ASK](https://www.allyenergy.com/the-ask) - [PRESS](https://www.allyenergy.com/about/press) [Call +1 281-741-5482](tel:+12817415482) - 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A Conversation on Energy & COVID-19 ![](https://www.allyenergy.com/hubfs/Blog%20Authors/ally_one.jpeg) Written by: [ALLY](https://www.allyenergy.com/blog/author/allycommunity) - [Share](https://www.facebook.com/sharer/sharer.php?u=https%3A%2F%2Fwww.allyenergy.com%2Fblog%2Fnow-what-conversation-with-industry-specialists) - [Share](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.allyenergy.com%2Fblog%2Fnow-what-conversation-with-industry-specialists&title=%22Now%20What%3F%22%20-%20A%20Conversation%20on%20Energy%20%26amp%3B%20COVID-19&summary=Companies+will+need+to+cut+spending+by+41%25+in+2020+if+oil+falls+to+%2435+per+barrel.+Many+are+already+cutting+back.&source=) - [Tweet](https://twitter.com/home?status=%22Now+What%3F%22+-+A+Conversation+on+Energy+%26amp%3B+COVID-19%20https%3A%2F%2Fwww.allyenergy.com%2Fblog%2Fnow-what-conversation-with-industry-specialists) - [Watch](https://vimeo.com/allyenergy) ![](https://www.allyenergy.com/hubfs/Imported_Blog_Media/Energy-Market-during-COVID-1-1-p2sgej9u376100pvzsqxwf1q1q9p652eiz6af487m0.jpeg) When we started our "Grow with the Flow" series to help connect everyone in this everchanging COVID-19 world, we asked attendees what they wanted to hear about. The most common answer: **Markets/Business Impact.** This in mind, we reached out to [Wood Mackenzie](https://www.woodmac.com/) and [Gibson, Dunn & Crutcher](https://www.gibsondunn.com/) to see if any of their industry specialists could spare time to speak with Pink Petro and a few hundred of our "friends." Dr. Valentina Kretzschmar, Vice President, Corporate Research at Wood Mackenzie, and Anna Howell, Partner- Co-Chair Oil & Gas Group at Gibson, Dunn & Crutcher LLP, stepped forward. ...And so did you. In all, we had **more than 350 people register** for the event with **representation from 15 countries**. We also had representation from **more than 180 companies**. This included all our corporate members, but a big hats off goes to Chevron, Shell, Baker Hughes, Enbridge, Equinor, Weatherford, and of course, Wood Mackenzie and Gibson, Dunn & Crutcher LLP. Had this been an in-person conference, each of your companies could have individually filled a table (or several, in some cases). We are planning more sessions, so [keep an eye on our calendar for updates](https://www.allyenergy.com/events-1/). In the meantime, here are a couple of highlights from the event, the full "Now What?" session on video, and resources. ## Big cuts ahead Dr. Kretzschmar notes that companies will need to cut spending by 41% in 2020 if oil falls to $35 per barrel. Many are already cutting back. Over the past couple weeks, around 50 companies have slashed their budgets by around $21 billion. Yet, this only amounts to around 28%. With more companies changing course in the past day or so, the amount is closer to $30 billion. Howell explains that many companies are taking proactive measures, such as: - Talking to their lenders - Modeling the scenarios - Working out their liquidity issues - Looking at their covenants - Trying to renegotiate their debt - Trying to bring in new lenders in order to avoid insolvencies and bankruptcies However, the issues being faced today are amplified compared to those from the last oil crash, simply because financing was tight before this crash and the additional COVID-19 challenges. This in mind, it's essential for energy companies to take a proactive approach and start looking into solutions now. Many are doing so, but she laments there will inevitably be some bankruptcies and insolvencies throughout the industry in addition to restructuring that's already happening. ## Watch the Full Web Event | [Download Slides](https://www.allyenergy.com/hubfs/E-Event%20Presentations%20and%20Materials/NOW_WHAT_Web_Event_Deck.pdf) [https://vimeo.com/400392970](https://vimeo.com/400392970)   ![ALLY](https://www.allyenergy.com/hs-fs/hubfs/Blog%20Authors/ally_one.jpeg?width=150&name=ally_one.jpeg) ## [ALLY](https://www.allyenergy.com/blog/author/allycommunity) Hi. We're ALLY. We're a force for good. Our mission is to accelerate the building of culture, careers and skills for an equitable energy transition. - - - ## Related Posts [![Christine Bader, the Corporate Idealist](https://www.allyenergy.com/hubfs/Imported_Blog_Media/Corporate-Idealist-Featured-Image-1-min-p2selhtv6w4rnd6ys6n9vbwiawudk3v1923ryunw5k.jpeg) Emotional Intelligence, Diversity, Equity & Inclusion, Storytelling & Personal Branding Christine Bader, the Corporate Idealist ![](https://www.allyenergy.com/hubfs/Blog%20Authors/ally_one.jpeg) ALLY](https://www.allyenergy.com/blog/qa-with-christine-bader-the-corporate-idealist) [![Electric Cars and Air Conditioners Are No Cure for CO2](https://www.allyenergy.com/hubfs/Imported_Blog_Media/Screen-Shot-2019-01-22-at-1.42.57-AM-p2s1thlajqf1tddmwce4metkkg5okno1c8jaxwpx8o.png) Climate & Sustainability Electric Cars and Air Conditioners Are No Cure for CO2 ![](https://www.allyenergy.com/hubfs/Blog%20Authors/ally_one.jpeg) ALLY](https://www.allyenergy.com/blog/wef19-strategic-outlook-on-energy) [![All In: Our Work-First Culture is Failing Business](https://www.allyenergy.com/hubfs/Imported_Blog_Media/Josh-Levs-HERWorld17-1-p2sfv8n3smr4o6qvnyhn7sc31zdg5tgrjh2grmu5c8-1.jpeg) Diversity, Equity & Inclusion, Storytelling & Personal Branding, Parenting & Family All In: Our Work-First Culture is Failing Business ![](https://www.allyenergy.com/hubfs/Blog%20Authors/ally_one.jpeg) ALLY](https://www.allyenergy.com/blog/herworld17-josh-levs-keynote-all-in-how-our-work-first-culture-is-failing-business) ### Subscribe Here! 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