ABSTRACT
By applying novel partial wavelet coherency, this paper investigates the transmission mechanism of the volatility from the oil, gold, and silver sector to the energy sector in the time and frequency dimensions as well as the influence of the COVID-19 health crisis on this linkage. The multiple coherencies suggest at least five multiple cycles, which are located at high frequencies (the 52 – 132-day frequency band). Among these cycles, the largest one occurs at the low frequency (the 120 – 132-day frequency band), and this cycle is persistently prolonged. Notably, the four sectors' remarkable interlinkages of the volatility are presented more clearly since the COVID-19 pandemic first appeared and hit the globe (from the end of 2019 to the middle of 2020). The partial coherency between the volatility of the energy sector and the volatility of the oil sector reveals that the relations between two sectors are relatively persistent, which changes in the energy sector's volatility cause the oil sector to become more volatile. The partial coherency between the volatility of the energy sector and the volatility of the gold and silver sector suggests their interlinkages are time-varying and can be divided into four phases. The relationships are either positive or negative, and the energy sector or the silver or gold sector could be an attendant of other market's rising volatility. During the time of the COVID-19 pandemic, the energy sector's volatility is in-phase with the oil and silver sector's volatility leading, whilst the gold sector's volatility leads to the energy sector's volatility, and the relation is negative. © 2023
ABSTRACT
Many of the well-established practices and procedures those were followed in the execution of Oil & Gas Industry Projects were seeing a shift towards digital transformation in recent years, which got accelerated due to the Covid-19 pandemic. Digital transformation is the adoption of digital technologies whereby the existing business processes are modified or new ones are created. This process of redefining the conventional procedures, culture and customer experience to meet the changing requirements benefit the overall business function. Redefining the process of business in the digital age is digital transformation. Digital transformation in Oil & Gas Industry is embracing of technology to reshape how oil and gas companies manage and operate their assets. The digitally-enabled and data-centric approach leads to improved productivity, higher efficiency and increased cost savings. One of the Process Transformation example in Oil & Gas sector is to conduct the Factory Inspection and Acceptance Tests remotely utilizing various digital tools available in this digital age instead of the conventional way of physical participation in the testing. Many industries were already exploring the possibilities of non-conventional work practices such as Work from Home (remotely, away from office), conducting virtual meetings with remotely located participants. These practices were still not accepted in all the industries prior to 2020. However the outbreak of Covid-19 pandemic worldwide created a need to accept these non-conventional practices of remote or virtual work. Post Covid (2020), these are widely accepted in most of the industries including Oil & Gas sector. The concept of Virtual Remote Factory Acceptance Test (FAT) is explored to overcome the unforeseen situation arose due to worldwide Covid-19 outbreak. Travel restrictions were imposed worldwide to curb the covid-19 spread, which made a halt to the normal work practices followed till then. Virtual Remote FAT is a successful alternative to the conventional way of conducting the FAT and was utilized during Covid-19 outbreak. Virtual remote FAT is successfully completed in some of the recently executed projects and this can be pursued even after the Covid crisis. © Copyright 2021, Society of Petroleum Engineers
ABSTRACT
This paper analyses the contagion effect on Latin American markets and the United States during the COVID-19 pandemic using the DCC-GARCH model. The main finding is the determination of the existence of a statistically significant contagion effect between the US and the markets of Chile, Peru, Colombia, Mexico, and Brazil during the crisis period, implying that these markets were exposed to external shocks during the COVID-19 pandemic. Particularly, Mexico and Brazil have a stronger link to the U.S. market. In addition, the volatility of the U.S. market has a significant effect on the conditional correlations of the Latin American markets.