Following the Covid crisis, the price of a barrel has dropped sharply since the beginning of the year, it has dropped from 70 dollars to less than 40 dollars currently. Beyond these economic reasons, BP forecasts a price per barrel around only 55 dollars, which is low, until 2050.
Are we definitely done with expensive oil? This is the astonishing conviction of one of the world's best specialists in black gold, in this case the oil giant BP.
This is one of the multiple consequences of the Covid crisis. The price of a barrel has dropped sharply since the beginning of the year, it has dropped from $ 70 to less than $ 40 today. First because of the shutdown of savings. And then because there is too much supply and the big producers like Saudi Arabia and Russia cannot agree to produce less. But beyond these cyclical reasons, BP forecasts a price per barrel around only 55 dollars, which is low, until 2050! And this is new and exciting.
And how is it explained?
BP gives the signal for the world to shift into the post-oil era. He predicts that CO2 will be increasingly taxed, so that fossil fuels will become less and less profitable. He even foresees, imagine, that certain oil and gas fields could never be exploited, therefore are worth nothing! What BP says, and which Greenpeace summed up very well on Monday, is that "the climate emergency would reduce the value of oil". The world will want less oil. Besides, Total and Shell make the same reasoning and invest a lot in the post-oil period. What it also says is that these big companies are driving forces in the energy transition, no doubt more than governments and certainly than big talk. The world is changing.