Day 40 of UK lock down: The writing is on the wall for fossil fuels

The oil industry is foundering, and even traders in futures markets are beginning to seek more buoyant ships.

Meanwhile, forward looking companies that read the writing on the wall some time ago, such as Danish state-owned oil & gas company (Dong) morphed into a renewable energy company (Ørsted), are now thriving despite the pandemic. See report here.

In a recent article in the influential Science Magazine, Daniel Rosenbloom & Jochen Markard summarise very lucidly the global opportunity created by the current circumstances for a rapid move to a cleaner future.

At the same time, they highlight the need not only to avoid bailing out fossil fuel companies and industries, but also to support affected workers and communities in the form of temporary relief, retraining, and retirement benefits. The choice of a cleaner and more sustainable future involves a fair and regenerative approach to human resources too.

And opinion from within the oil industry is beginning to shift in the same direction !

Day 30 of UK lock down: we don't have to be led by any kind of donkeys

Covid-19 travel restrictions and slowing down of business & industry have led to a dramatic drop in demand for oil, and an equally dramatic drop in oil price, and oil producers are now racing to reduce production. The US was too slow off the mark, and over-production there, coupled with full reserves, led to negative pricing for the first time ever, which is a revealing indication of the power of market demand over these allegedly unstoppable Molochs.

Blaming the oil companies for what they do is like blaming lions for eating antelope, which is not a solution. Move the antelope elsewhere, and the lions will go away.

We have a huge opportunity here to seize the moment and push for a swift transition to renewable energy, and for a radical review of our underlying energy demand. We can change, and this is the moment to do it.

Report on oil price response to reduced demand