Meanwhile, the oil industry faces a major crisis

Brut America

Meanwhile, the global oil industry is facing its biggest crisis in a decade. But environmental NGOs and activists see it as an opportunity to accelerate the energy transition. This is why.

Transcript

00:00🎵

00:29What is the impact of the COVID-19 pandemic on transport?

00:36There was already a kind of structural imbalance

00:40that has increased significantly with COVID-19

00:47because all transport is stopped,

00:50planes, cars, even the trade of goods.

00:54But the bulk of the oil demand is for transport.

00:58So no more transport, no more demand,

01:00the supply continues,

01:02it creates a huge imbalance

01:04that explains the price collapse.

01:07What is the impact of the COVID-19 pandemic on oil production?

01:14During this time, tankers were arriving,

01:17so they absolutely had to get rid of this oil,

01:21knowing that otherwise they would have to pay for storage.

01:27And as the slowdown of demand

01:29made the stocks completely full,

01:32they could no longer find customers

01:34and they were ready to pay

01:36to get rid of the oil they had bought.

01:40What is the impact of the COVID-19 pandemic on oil production?

01:52The COVID-19 epidemic

01:55has completely disrupted the oil scene,

01:58which was already quite unstable

02:01insofar as, for quite a few years,

02:05there has been a very significant increase in supply,

02:07that is, in production,

02:09notably due to the United States

02:11and the inability of the OPEC countries

02:14or large other producing countries

02:16to agree to try to limit their production.

02:18In the months or years to come,

02:21it is very likely that demand for oil

02:24will not go up fundamentally.

02:27Air traffic will still be affected

02:30for several months or even several years,

02:33so there will be less demand,

02:35people will move less,

02:37so overall demand will drop.

02:41What is the impact of the COVID-19 pandemic on oil production?

02:50The structural flaws with this industry

02:53were already visible before the pandemic,

02:55but it has revealed just how vulnerable

02:58we all are to shocks in the economy

03:01and particularly shocks in the price of oil.

03:05If we do not use this moment

03:08to transition past the oil industry,

03:10the oil industry economy that is driving climate change,

03:13we can expect more shocks to come.

03:15What is the impact of the COVID-19 pandemic on the economy?

03:26Without a doubt, we are seeing

03:28that people can change their behavior remarkably quickly

03:31and governments can mobilize resources

03:33if they believe that human lives are at stake,

03:36and we know that human lives are at stake

03:39from the climate crisis.

03:41This is an opportunity to pivot the economy

03:43towards clean energy,

03:45and that's the choice that is going to be

03:48the safest for people and planet,

03:50and that's what we hope governments

03:51will put forward in this crisis.

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