Coronavirus Could Affect Oil Consumption Until 2024
The negative impact of the pandemic may persist for several more years, says the draft master plan for the development of the oil industry. Coronavirus may lead to a reduction in oil production in Russia until 2040
The negative impact of the COVID-19 pandemic on global oil consumption may persist until 2023-2024.
At the same time, the peak in oil demand may be surpassed before 2030-2035, according to the draft general scheme for the development of the oil industry for the period up to 2035.
The Russian oil industry will experience the growing impact of climate and environmental policies. It becomes likely that the introduction in the European Union after 2025 of cross-border carbon regulation of imports of hydrocarbons. "It is also expected that conditions will be tightened, the cost and the number of refusals in crediting new oil production projects from international and European financial institutions will increase," the draft general scheme says. The document also argues that the Russian oil industry needs to prepare for the transition of the world oil market to a state of long-term stagnation or decline in demand, which will both increase international competition for sales markets and reduce the investment attractiveness of the oil industry.