Global energy industry perspectives

The global effect of the COVID-19 pandemic has led to a theatrical impact on the energy sector. Investors are now repricing stakes in response to the immense uncertainties and financial complications.

The Current Situation of the energy sector


COVID-19 crisis in 2020 has altered the path of the energy market and World Energy Investment (WEI) responded by incorporating the latest data and insights. The demand for products like oil, gas, coal, and electricity has been lower. Also, the average prices for energy and oil products have fallen drastically with West Texas intermediate hitting negative prices for the first in history.

Global energy industry path for 2020

The GDP deterioration is estimated to be by 6% which is a stance consistent with the International Monetary Fund. And oil is bearing the brunt of this impact, as it is down by around 25mb/d. The monetary distress is already hurting the industry players. This has led to a demand for policymakers and regulators to ensure that functional maintenance and secured expenditures are prioritized and maintained. States have also seen a gradual reopening as lockdown bans partially being and the recuperation been U-shaped.

Energy investment in 2020

The poor global energy consumption in 2020 is rendering the world economy paralyzed and making investors uncertain. International energy industry experts like Ahmad Atwan believe that there is a silver lining in the form of renewable energy which is incorporated in several upcoming projects.

It is advised that the best way to profit from the slump is to invest in companies with stronger structures. It is important to note that the oil market has not crashed despite the negative prices of April 20.