Ripples caused by BP Oil Outlook 2020

 

BP Energy Outlook 2020

The shocking announcement by the oil giant BP that the oil would never recover to the level that the markets were aspiring for, was the last thing that the producers wanted to hear in a turbulent time.

The producers, mainly the OPEC, did not try to dampen the pessimism. On the contrary they added fuel to the fire by saying that the global demand will be down by 400,000 bpd this year.

The OPEC and BP saw eye to eye on the issue and the influential global Green lobby, understandably, was ecstatic.

It is highly debatable why BP chose to embrace the gloomy outlook for the future of fossil fuels, when the evidence clearly shows signs to the contrary – fossil fuels are here to stay for decades to come.

In fairness to BP – and all those in similar positions – we have to admit the oil giant knows the influence that environment activists wield over many global bodies.

With the minority that defends the industry is on permanent and irreversible decline, these companies were left with no choice, but adapt to reality, before being completely voiceless or even irrelevant.

It is highly likely that other oil giants will be tempted to follow suit in the coming months, rather than being at the centre of PR backlash.

In those circumstances, the OPEC will be forced to look beyond production cuts to face the multiple challenges; neither short-cuts nor soundbites will do the trick to reverse unprecedented threats on many fronts to the industry.

 

 

 

 

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