The coronavirus pandemic has triggered the biggest drop in demand for fossil fuels on record. This year the fossil fuel industry could observe a fall of global carbon emissions by a record of 2.5bn tonnes. It accounts for a reduction of 5%.
The head of the International Energy Agency, Dr. Fatih Birol, has shared his views on the same. He has warned against viewing the steep decline in emissions from fossil fuels as a climate triumph. He said that the current decline is the result of the economic meltdown. Thousands of people are losing their livelihoods. It is not as a result of the right government decisions in terms of climate policies. He adds that in new economic stimulus packages, the governments shall take the right measures to include support for clean energy. Otherwise, once COVID-19 is brought under control, this decline could be easily wiped out in the rebound of the economy. He said that emission decline is the need of the hour as we want happier and healthier people and a more livable planet.
Rystad Energy conducted a fossil fuel analysis. It is a Norwegian energy consultancy. It observed a sharp contraction in GDP. It states that the abrupt halt of flights and driving could cause the world’s oil demand to fall. It could fall by more than five times, as compared to the drop in demand triggered by the global financial crisis in 2008.
Erik Holm Reiso is a senior partner at Rystad. He said that a coronavirus pandemic is an unprecedented event for energy markets. It will have a substantial impact on the world’s total carbon emissions. He also emphasized on the considerations of the long-term impact of the virus.
The demand for petrol and diesel will also observe a dent due to fewer cars on the road. It will be by an average of 9.4% over the year. It will shrink oil demand in 2020 by an average of 2.6m barrels of oil a day. The analysts state that in the second half of the year, the use of transport fuels may start recovering. However, the found demand would lag the figures recorded last year.