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.
an opportunity to accelerate the energy transition. This is why.
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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.