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Mon Sep 14, 2020, 10:45 AM

The world may never consume more oil than in 2019, BP says


London (CNN Business)Demand for oil may have peaked last year, according to BP, which says the global market for crude might never recover from the coronavirus pandemic.

In a new report published on Monday, the company lays out three scenarios for energy demand, all of which forecast a decline in demand for oil over the next 30 years. The scale and pace of the decline will be driven by the increasing efficiency and electrification of road transportation, BP (BP) said.

In a "business-as-usual" scenario, in which government policies and social preferences evolve in the same way as in the recent past, oil demand picks up slightly following the coronavirus hit, but then plateaus around 2025 and starts to decline after 2030.
In two other scenarios, in which governments take more aggressive steps to curb carbon emissions and there are significant shifts in societal behavior, demand for oil never fully recovers from the decline caused by the pandemic. That would mean that oil demand peaked in 2019.

The new report is a major change from last year, when BP expected growth in oil demand to continue into the 2030s.

The shift reflects the profound effect that the pandemic, which brought travel and manufacturing to a near standstill, has had on global energy markets. Analysts think the crisis will accelerate the shift away from fossil fuels towards renewable forms of energy, particularly as governments and investors heap pressure on companies to tackle the climate crisis amid growing evidence of its devastating effects.

Many climate change types have wanted to reduce consumption for a while now. Reduced commuting has been awesome for many folks. Reduced travel has had major impacts on air quality in many parts of the world.

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Reply The world may never consume more oil than in 2019, BP says (Original post)
IronLionZion Sep 2020 OP
Amishman Sep 2020 #1
IronLionZion Sep 2020 #2

Response to IronLionZion (Original post)

Mon Sep 14, 2020, 11:53 AM

1. Good!

Not getting much headlines, but very interesting is the final stage collapse of Venezuela's oil industry that is going on right now.

Their last functioning drilling rig shut down last month. There are zero new oil wells being drilled in the country with the largest oil reserves. production is down over 80%

This is a country that was tied with Kuwait for the #5 spot in OPEC just six years ago.

A huge oil player removed from the market, with no hope of rallying for years, and the market doesn't care.

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Response to Amishman (Reply #1)

Mon Sep 14, 2020, 12:02 PM

2. The world stopped caring about Venezuela long ago

conservatives like to say that socialism was their downfall, not the crashed oil market. There was a time when they were in the news often but they've been overshadowed by other events.

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