• 2 minutes Oil Price Could Fall To $30 If Global Deal Not Extended
  • 5 minutes Iran downs US drone. No military response . . Just Destroy their economy. Can Senator Kerry be tried for aiding enemy ?
  • 8 minutes The Inconvenient Truth Of Electric Cars
  • 3 hours Here we go folks, the wish of so many: Pres. Trump threatens to lessen US security role in Strait of Hormuz, unveils sanctions
  • 1 hour Magic of Shale: EXPORTS!! Crude Exporters Navigate Gulf Coast Terminal Constraints
  • 2 hours To be(lieve) or Not To be(lieve): U.S. Treasury Secretary Says U.S.-China Trade Deal Is 90% Done
  • 20 hours Wonders of Shale - Gas, bringing investments and jobs to the US
  • 3 hours Looks like Trump is putting together a "Real" Coalition to protect Persian shipping lanes. Makes perfect sense. NO Fake "Coalition's of the Willing" UPDATE REUTERS Pompeo "Sentinel Program"
  • 15 hours Here We Go: New York Lawmakers Pass Aggressive Law To Fight Climate Change
  • 16 hours The Strait of Hormuz is the world’s most important oil transit chokepoint
  • 11 hours Hard To Believe: UAE Will Work To Defuse Middle East Tension
  • 5 hours Cap and trade: What could Oregon’s carbon policy cost you?
  • 5 hours The Plastics Problem
  • 20 mins On the hobby side of things
  • 17 hours Climate change & Wildfires: More Wildfires To The Western U.S., Will Affect Tens Of Millions Of People
  • 9 hours Oil Demand Needs to Halve: Equinor
The No.1 Trade-Off For U.S. Shale Companies

The No.1 Trade-Off For U.S. Shale Companies

U.S. shale companies find themselves…

Middle East Tensions Move Oil Prices Higher

Middle East Tensions Move Oil Prices Higher

Oil inched higher on Tuesday…

Paris Agreement Could Trigger Free Fall In Oil Demand

Paris

Crude oil demand could begin declining steadily from 2025 onwards if governments and industries get serious about tackling climate change and reducing emissions, asset manager Legal and General Investment Management has warned.

Reuters quoted the company as saying if everyone who signed the Paris Agreement on Climate Change decides to really fulfill their commitments by implementing new policies and shrinking the use of fossil fuels, oil demand could shed as much as 40 percent by the early 2040s from today’s levels. This means it would stand at around 60 million barrels daily.

If, however, there is no change in policies concerning climate change, crude oil demand would likely peak at some 110 million bpd around 2030, the asset manager said in a study of the issue. The study aimed at identifying companies that would both benefit from stricter environmental policies and not suffer any negative consequences if no such policies are enforced.

Both of these scenarios are less realistic than a middle one, in which governments continue to enforce new policies aimed at arresting the rise in average global temperatures but not at the optimal pace and with the optimal scope.

“It’s hard to argue that if oil demand starts to go into free fall, which is what we see as plausible, that ... the oil and gas industry as a whole remains as intrinsically as profitable as it does today,” the head of commodity research at Legal and General Investment Management, Nick Stansbury, told Reuters.

Stansbury added oil companies even stand to benefit from pro-environment policies if they re-orient themselves ahead of the changes such policies bring about. No wonder we are seeing Big Oil expand into non-core business areas that it plans to turn into core business in the future. The latest big announcement here was Shell’s plan to become the world’s largest power utility.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News