With demand and share prices dropping, Europe’s fossil fuel producers recognise that peak oil is probably now behind them
A year ago, only the most ardent climate optimists believed that the world’s appetite for oil might reach its peak in the next decade. Today, a growing number of voices within the fossil fuel industry believe this milestone may have already been passed. While the global gaze has been on Covid-19 as it ripped through the world’s largest economies and most vulnerable people, the virus has quietly dealt a mortal blow to oil demand too.
Energy economists claim with increasing certainty that the world may never require as much oil as it did last year. Even as economies slowly emerge from the financial fallout of the pandemic, the shift towards cleaner energy has gained pace. A sharp plunge in fossil fuel use will be followed in quick succession by a renewable energy revolution, which will occur at unprecedented pace. The tipping point for oil demand may have come and gone, and major oil companies are taking note.