Given the enormous funds currently being dedicated to support the economy during the COVID crisis, there has been a lot of talk of the need for ‘green’ stimulus, to ensure that economic recovery doesn’t tank the environment. Yet the fundamental upheaval in oil supply and demand right now might be a sign of a significant structural shift in the energy market that accelerates ‘green’ energy even faster.
Current oil demand decreases could be seen as the canary in the coalmine, a preview of demand projections for the future. Prior to Covid-19, Barclays projected a global peak in oil demand between 2030 and 2035 followed by a steady demand reduction, while the International Energy Agency (IEA) projections also sees oil demand plateau in the 2030s.
