Oil Price: even Canada sees its need for decades to come!

 

Weekly Oil Price

During the first phase of the Coronavirus pandemic, beginning from the spring, in Europe and America, the demand - and the production of oil - went down and it was perfectly understandable.

During the second phase, although things relatively improved with a slight decline in deaths, the situation still is nowhere near normal.

Since the hope of a vaccine – and evolving data that boosts it – seesaws on a PR hinge, there is a strong possibility of the world going into a third phase too, whatever out politicians say.

That means the recovery of oil prices and the production may be slow, but will not be on a downward spiral, as it happened during the first phase of the pandemic.

The combination of ‘unknowns’ evolved into a gloom of epic proportions and sent price crashing down even below zero; it was short-lived, though.

As this is the case, it’s unfortunate to read into the data that stems from a period of uncertainty and make inferences from it. This seems to be what some over-excited Green enthusiasts do, while grabbing the data from these periods.

They appear to imply the downward trend is more to do with falling demand due to environmental concerns than an unavoidable development due to Coronavirus pandemic.

That’s not the worst; they think it is perpetual!

The data manipulations of this kind continues, despite the factors that really matter, say otherwise: time and again, a few serious reports indicated that fossil fuels are not going away in the next few decades to come.

It is reported that even in Canada, the main source of energy will be from fossil fuels for about three more decades. Canada is a nation that takes environmental issues seriously and is progressive in its dealings, when it comes to addressing the issue.

The reality, however, is crude oil will be in demand for decades to come, as there will not be a reliable substitute for it - for a long time.

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