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This Historic Oil Price Crash Will Create A New Era For Energy
In the last couple of months, the global energy industry has been flipped on its head. As the novel coronavirus pandemic ravaged economies around the world, the energy industry took a particularly brutal hit, made infinitely worse by an oil price war between the leading OPEC+ countries of Saudi Arabia and Russia. In the severe global crude oil glut that ensued, oil supply soon threatened to overtake available worldwide storage capacity, plunging the West Texas Intermediate crude price well below zero, in a historic upset that sent serious shockwaves through global markets.
The severity of this oil price crash and pandemic panic means that ‘business as usual’ is no longer an option. The global energy sector is at a historic crossroads in which some big, world-altering decisions will have to be made and unprecedented international collaboration will be essential in order to stabilize markets. Until now, there has never been a disruption to the status quo large enough to enable any serious re-thinking of the way we power our world, but coronavirus has given us that unthinkable pause.
A report this week from the World Economic Forum highlights this unique opportunity, positing that “the crisis offers an opportunity to consider a new energy order to enable the energy transition in a sustainable way.” Critics of fossil fuels and Big Oil have been overpowered and drowned out by the momentum of the machine and the unshakable inertia of business-as-usual. Maybe an apocalyptic global pandemic is what it takes to truly divest from fossil fuels and redirect the sector.
“Though this is the worst possible way to begin a decade, the coronavirus pandemic and the collapse of oil prices also offer an opportunity to consider unorthodox intervention in the energy markets and global collaboration to support the recovery phase once the acute crisis subsides,” states the World Economic Forum. “This giant reset grants us the option to launch aggressive, forward-thinking and long-term strategies leading to a diversified, secure and reliable energy system that will ultimately support the future growth of the world economy in a sustainable and equitable way.”
Already, the COVID-19 pandemic and oil price crisis has fostered previously unseen levels of cooperation and collaboration between OPEC and the G20 international forum for governments and central banks. Saudi Arabia, Russia, and the United States, three petroleum powers that have no historically played nice, were able to reach a deal to mitigate the oil price crash, which “sets a precedent for future collaboration for global energy security and economic growth.” This could be pivotal for the development of meaningful policy and alliances for a global energy transition. “While the impact of this alignment in the short term has been low and insufficient,” says the World Economic Forum, “the medium- and long-term effects could be substantial.”
An energy transition away from fossil fuels isn’t going to happen overnight, of course, even in the middle of a pandemic and negative oil prices. The world’s infrastructure is set up to run on oil, the global economy is organized around it, and petro-nations and oil autocrats in countries like Saudi Arabia, Russia, and Iran will not go quietly into that goodnight. This crisis has shown, however, that the current system has serious vulnerabilities and diversifying the energy economy will be in the best interest of everyone.
“Threats to the infrastructure from extreme weather events, the increasing risk of cyberattacks, and the disruption to supply-and-demand balance from external shocks such as COVID-19 expose vulnerabilities in the system. This can be detrimental to society at large,” continues the World Economic Forum report. “Lasting and systemic outcomes can only come from a balanced approach, which values economic growth, security and reliability along with sustainability, and promotes stability in energy markets.”
We all knew that the end of oil was coming. Even Saudi Aramco admitted that they expect peak oil by midcentury. But the pathway to achieving an energy transition before reaching the tipping point toward catastrophic climate change has always been murky at best, with the private sector often dominating the decision-making. If there were ever a time to change that tune, it’s now.
By Haley Zaremba for Oilprice.com
20 Comments on "This Historic Oil Price Crash Will Create A New Era For Energy"
c8 on Wed, 29th Apr 2020 12:38 am
Before comments begin, I want to thank all the sockpuppets, supertards and pink poodles that come here every day to provide me with a genuine laugh and (often) a lot of insight.
I have been down and blue while surfing the internet at times and every time I read you guys blasting each other I smile again.
This un-moderated section of PO.com is the last refuge of truly free thought in the US. Reading it is like beholding the last flock of passenger pigeons before powers shoot every thing down and all we are allowed is “approved’ speech.
My only concern is that you are all actually just one person with multiple personalities that don’t know each other- like a multi headed hydra-tard. But I guess i will never know the truth.
carry on
Davy on Wed, 29th Apr 2020 6:33 am
Your welcome cate. Are plesure.
Davy on Wed, 29th Apr 2020 6:43 am
Hey, stupid, I answered your lame comment on the moderated side where you hardly go because your multiple personality disorder is ineffective. Your personality that tries to act normal just got its ass kicked. LMFAO. I know you pretend you put me on some imaginary ignore over there but the reality is you can’t ignore me you are completely obsessed with me. You fucked with the wrong guy loser! Now you are paying!
goofou on Wed, 29th Apr 2020 8:31 am
Good article great open and reflective debate. The comments so far so enlightening.
Not Davy on Wed, 29th Apr 2020 9:44 am
Davy on Wed, 29th Apr 2020 6:43 am
REAL Green on Wed, 29th Apr 2020 9:54 am
Thank you goofou. Are job here is too nueterize anyone that says stuff we don’t like. We like to pretend it keeps the debates one sided. Even though we really always loose them.
whoa hello my name is debbie this is my first attempt at eharmony i love cats i love every kind of cats but i cant hug all cats so anyways im a cats lover and i love to run sry im being emotion i just love cats on Wed, 29th Apr 2020 10:22 am
c8 on Wed, 29th Apr 2020 12:38 am
Before comments begin, I want to thank all the sockpuppets, supertards and pink poodles that come here every day to provide me with a genuine laugh and (often) a lot of insight.
thanks supertard, we all happy to entertain u.
please allow me to appoint you supertard, you’re title is “the lover” (of muzzies)
congratuatios on your new supertard status.
SocialRevolutionComing on Wed, 29th Apr 2020 10:23 am
The pillars for a social revolution are almost all in place. The link between the people and the institutions is broken. No longer do people believe COVID is contagious and deadly. Hospitals are empty. No one believes the media such as TVA and Radio-Canada as sources of valid information. The food distribution chain is collapsing due to COVID. The world governments are becoming more and more dictatorial, think of the fine of $ 1000.
Rabobank: The Next Phase Of The Crisis – Food Shortages In Staples Such As Rice, Sugar, Corn And Eggs
https://www.zerohedge.com/markets/rabobank-next-phase-crisis-food-shortages-staples-such-rice-sugar-corn-and-eggs
https://www.cnbc.com/2020/04/27/tyson-foods-chairman-warns-food-supply-chain-is-breaking-as-coronavirus-forces-plant-closures.html
Tyson said a limited supply of its products will be available in grocery stores until the facilities reopen. These temporary closings will also mean that millions of head of cattle will be slaughtered because farmers will not be able to sell their pigs, cows and chickens to buyers who can process the meat.
whoa on Wed, 29th Apr 2020 11:03 am
SocialRevolutionComing on Wed, 29th Apr 2020 10:23 am
Tyson said a limited supply of its products will be available in grocery stores until the facilities reopen. These temporary closings will also mean that millions of head of cattle will be slaughtered because far
good one for the love of supremacist muzzies, supertard.
ask yorself cui bono?
thereligionofpeace.com/pow/Ramadan-Bombathon-2020.jpg?12012
Duncan Idaho on Wed, 29th Apr 2020 11:12 am
‘A phantom plague’: Evangelical fundamentalists who openly defied social distancing guidelines are dying of coronavirus in frightening numbers
https://www.alternet.org/2020/04/a-phantom-plague-evangelical-fundamentalists-who-openly-defied-social-distancing-guidelines-are-dying-of-coronavirus-in-frightening-numbers/
(Darwin at work(
joe on Wed, 29th Apr 2020 11:59 am
Hydrocychloroquin does work.
“https://www.dailymail.co.uk/health/article-8266737/amp/Doctors-group-claims-hydroxychloroquine-helps-91-coronavirus-patients.html?ico=amp_articleRelated”
Trump was right
whoa on Wed, 29th Apr 2020 12:56 pm
thank you for the info on Hydrocychloroquin little small big brother joe suprtard
i will research
Duncan Idaho on Wed, 29th Apr 2020 2:01 pm
Fed commits to near-zero rates as US economy sees ‘sharp declines’
And the Dow is up 500+
Davy on Wed, 29th Apr 2020 2:47 pm
Hey stupids I sock all your lame comments on the unmoderated side where I always go because of my multiple polar no-personality disorder. My personality that tries to act normal always gets its dumb-ass kicked. LMFAO. I know I pretend I am some imaginary moderator over here but the reality is everyone ignores me almost completely. I’m a fucked up loser! Now I am paying!
JuanP on Wed, 29th Apr 2020 5:14 pm
Hey, I am stupid I sock all your lame comments on the unmoderated side where I always go because of my multiple polar no-personality disorder. My personality that tries to act normal always gets its dumb-ass kicked. LMFAO. I know I pretend I am some imaginary moderator over here but the reality is everyone ignores me almost completely. I’m a fucked up loser! Now I am paying!
Duncan Idaho on Wed, 29th Apr 2020 5:27 pm
“Please don’t call them protesters… they’re terrorists. Protesters don’t carry AK47s, wave swastika flags, or block ambulances.”
― Daniel Staniforth
Well, in ‘Merika they do—
Dredd on Wed, 29th Apr 2020 5:29 pm
Oil-Qaeda gets religion (The Machine Religion).
makati1 on Wed, 29th Apr 2020 6:09 pm
When this virus farce blows over, the world will be much different and in a negative way for many, especially in the dumbed down, drugged up, obese Amerika. You are in a deep depression, tax slaves. Now you will be locked down in your home, on house arrest, every time someone sneezes. The police state has to trained.
BTW: The Ps uses 1/12th the oil the US does with less than 1/3 of the population. We only produce ~35,000 bbl/day but have a nine month reserve cushion in the ground. Los more once we get an agreement with China to recover the oil in the S.China Sea. An ongoing discussion.
We do not need oil to farm, just to move people and goods. No heating oil required. Not to mention that our close-by neighbors export oil and refinery products.
“The Philippines consumes 0.17 gallons of oil per capita every day (based on the 2016 population of 103,663,816 people), or 63 gallons per capita per year (less than 2 barrels). [1 barrel = 42 US Gallons]”
Meanwhile, the lock-down here is being lifted as of tomorrow. (The town here just celebrated its 386th anniversary.) Not that the lock-down is was really enforced much here in the countryside. It is still in effect in Manila, but I have no plans to go there in the near future anyway. It is ‘open up’ or put the Ps into a depression like Amerika is in. Deny if you want, but you are in a depression Amerika. A deep one.
REAL Green on Wed, 29th Apr 2020 10:35 pm
Can we please stop doin the pink poodle thang Davy-Juan. We’re making areselfs look even more REAL stupider then normal.
I AM THE MOB on Thu, 30th Apr 2020 4:51 am
Shut up stupid. Everyone knows the JuanP is the pink rabbit. Not me. He is depressed alcoholic and drug abuser and has multiple personality dis-order. Unlike me, who is happy, carefree, intelligent, and never socks or steals the intelligent posters ID to make stupid fake sock posts. Right cloggo?