News ID : 50585
Publish Date : 5/26/2020 6:00:11 PM
Steady Decline in Global Oil Demand is Still Far-Fetched

Steady Decline in Global Oil Demand is Still Far-Fetched

The head of the International Energy Agency said the steady decline in global oil demand was still far-fetched.

NOURNEWS - According to Bloomberg News, Fatih Birol warned that global oil consumption has not yet reached its peak and has frail hopes that the coronavirus outbreak will reduce demand &  greenhouse gas emissions.

He stated: “In the absence of strong government policies, a sustained economic recovery and low oil prices are likely to take global oil demand back to where it was, and beyond,”

Last year, nearly 100 million barrels of oil were consumed daily in the world, and some energy craftsmen believe that this figure could be the beginning of a decline in global oil demand. They believe that the spread of the coronavirus can lead to changes such as increased telecommuting and reduced travel and consumption.

If this hypothesis is correct, it could have many positive effects on climate change, as lower oil consumption will permanently reduce greenhouse gas emissions and make it easier to achieve the goals of the Paris Climate Agreement, But Birol warned governments that the Coronavirus would only temporarily reduce oil demand. While consumption will reach about 91 million barrels per day in 2020, it will increase again in 2021 and beyond.

The head of the International Energy Agency pointed out that behavioral changes are evident in response to this pervasive disease, but not all of them are negative for oil consumption. People work more from home, but outside, they use more private cars than public transport.

"Video conferencing does not solve our energy and climate challenges, the only solution is the right government policies," he continued.

He called on governments to use their economic recovery packages to tackle climate change and the cost of green energy to help achieve the goals set out in the 2016 Paris Climate Change Agreement

"If there is an economic recovery, American business consultants who use video conferencing will not be able to compensate the income of 150 million for the new Indian and African citizens who work in factories and move their purchased products with trucks," he said.

The International Energy Agency (IEA) implied on Wednesday (May 20th) that renewable energy production capacity will decline for the first time in 20 years this year amid the coronavirus outbreak, but is expected to see an increase next year.


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