Oil and gas predicted radical collapse


www.vsyako.netPhoto: Ivan Kovalenko / “Kommersant”

The current crisis caused by the epidemic of the coronavirus will bring sweeping changes to the energy market. This is stated in the analytical report of the International energy Agency.

Analysts are of the predicted collapse in the demand for fossil fuels (oil, natural gas, coal), of which the world has not seen since the Second world war.

Executive Director of the IEA, Fatih Birol said that stability in the crisis period show only alternative energy sources, including solar and wind generation.

At the end of the year it is expected to grow by five percent. Among the advantages named low operating costs and high adaptability.

As a result, expect the IEA, the share of alternative, renewable and nuclear energy in 2020 will reach a historic high of 40 percent.

Meanwhile, demand for natural gas will be reduced by 5 percent (the maximum rate for the entire history), the demand for hard coal by 8 percent and oil demand by 9 percent. This leads to the fact that the worldwide carbon dioxide emissions will fall by 8 percent, while the organization expects that after the crisis, they quickly return to the current level.

The IEA urged governments and system of the organization in advance to think about the problem of lack of investment. After all, if oil, gas and coal industry will not be able to maintain power, it would threaten the power system. Alternative energy generation is unstable, therefore, for the smoothing of peak fossil fuels is still needed.

Previously, the organization reported that global demand for oil in April will be reduced by 29 million barrels per day compared to the previous year is at least the mid 1990s.

The day before, April 29, Russian President Vladimir Putin has considered an unprecedented situation in the world oil market. He stressed that the situation in the spring of 2020, has never happened before in history.

Video, photo All from Russia.


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