The following are top energy trends to watch out for in the challenging market conditions affected by the pandemic:
1) Oil Production will decline into 2021
Due to the slowdowns as a result of Covid-19 infections, new standard operating procedures for health and safety for plants worldwide and market uncertainty for crude, production output was lowered to 10.7m barrels per day. The lower output resulted in a higher price for crude, and forced end users to seek out cheaper alternatives where possible to reduce costs. The situation was made more difficult with the bottleneck in energy shipping and logistics, with waterways and ports closed completely or partially to handle pandemic outbreaks.
2) Sustainables will grow in 2021
As consumers become more environmentally-minded and green-conscious, many sectors of the market are seeking renewable energy sources that align with this new trend of green-mindedness. Despite this, there has been production delays for many PV and wind turbine commissionings due to the Pandemic. China recently greenlit two massive hydro-electric plants, which contributed significantly to the global energy green index. The rise of conventional energy costs have also forced retail end users to consider alternative sources of energy to reduce usage costs (such as household solar cells etc.)
3) Increased energy demand for 2021 and beyond
With governments worldwide shuttering businesses and imposing lockdowns, many outdoor activities or events have been replaced with predominantly indoor meetings and activities. The new Work From Home paradigm has resulted in higher household usage of energy, and the reliance on virtual events, meetings, and activities has fuelled the accelerated growth of energy demand across the board.