Everyone knows that Coronavirus is affecting nearly all of modern life. It is not only causing pain and suffering physically, but it is also causing pain economically and emotionally. There will likely be more financial turmoil than physical peril. We all need to do our best to save money and work towards stability, but what if your industry is badly affected and you can’t do anything about it? Some industries are being more impacted than others, but the energy field is taking a huge hit. Everything from oil to renewables is being affected, here’s how.
The Oil Market
While the global oil market is expected to decline in 2020 as the impact of the Covid-19 pandemic. Since the virus is spreading, restricting travel and broader economic activity, the oil market will be greatly affected according to a forecast by the International Energy Agency. Of course the situation surrounding the virus remains uncertain.
With the oil market sharply declining in China, as well as major disruptions in global trade and travel, the International Energy Agency is saying the oil market is down 90,000 barrels a day from 2019. Previously, they predicted that the market would grow by 825,000 barrels, but now the estimation is between demand falling by 730,000 barrels and growing 480,000. Even the most optimistic interpretation is almost half of the original estimation. It goes without saying that the oil industry will take a hit from this, but they have a lot of money and will be fine. Other industries are put into more dangerous territory.
The Coal Industry
Of course, the coal industry was already going under, but it won’t likely survive the COVID-19 crisis according to the site used to compare energy suppliers, MoneyPug. The sector needs miners to be tending to the facilities and with social distancing, mines are being shut down. While the coal industry won’t fare well, it provides an unprecedented opportunity for the other fields to take its place. Even if the market of renewables doesn’t fully step in for coal, natural gas also has the ability to spread and make more money after this unfortunate time.
Natural Gas Sector
For years there has been a talk of natural gas becoming a more central part of our energy system. With the coal industry falling out, natural gas will replace coal. Still, the industry is being negatively affected by the virus. European Q2 gas isn’t looking great. Producers of natural gas in the United States are taking a look at crude prices. The demand for Indian natural gas may cut Asian LNG prices and these markets come under pressure as demand center in both European and Pacific basins. While people are tightening restrictions to tackle the virus, the natural gas industry will struggle.
Renewable Energy Field
The field of renewable energy is struggling during the pandemic like any other industry, but there is a real opportunity for the future. With the void left by the coal industry as well as the decreasing oil and natural gas, green energy has a chance to blossom. Social distancing has not helped and working from home has inhibited the progress, renewables can take the opportunity to spread their products. The businesses of renewables will struggle to survive, but the leaders have the chance to stimulate the economy surrounding renewables.
However you look at it, there will be a difficult time coming for the whole energy industry. Every sector of the field will struggle, there is no doubt about that. It will be a difficult time for the entire world. It won’t be easy, but it will be more difficult for some than it will be for others. Still, there is a great opportunity for us to choose who to support and why during this time. Coronavirus has shown that our world is more fragile than we think. It is unstable and unsustainable. This will not go on forever. What a great time, then, to think about the future of humanity and the impact we can have on it. If you can imagine a new world, you can help create it. With the virus having an effect on everything we do and what we will do in the future, let’s make sure that it is a positive impact.