Global crude prices are shifting further down due to fears of increasing corona virus numbers across the world and increased stockpiles of crude. Even before demand was hit due to the pandemic the Oil giants were looking to sell billions of dollars worth assets. BP e.g was looking to sell its stake in Purdhoe Bay which was a marvellous engineering feet for itself. Its eagerness to sell stake however comes from a fact that demand is not only going to take some time to come back but oil giants now want to shift to the best forms of hydrocarbons. They want to now own the cleanest forms of hydrocarbon energy.
The risks of having costly stranded assets are growing only more obvious. There used to be a lot of misinformation from the Industry stating that natural gas is a better form of energy than Crude etc. and that it burn least amount of hydrocarbons and also emits the least amount of carbon in the air.
Reports now suggest that natural gas is no more better than other forms of fossil fuels. In fact the way it is drilled from the oil bed can add even more carbon particles into the atmosphere.
Experts are of the view that the kind of drilling used in most types of drilling can be extremely harmful to the environment. The collapse of the oil economies will only further add to the economic woes of the world and hamper supply chains of energy unless countries immediately shift to greener forms of energy which is hard to do.
The oil prices are already falling in the US due to the rising corona virus cases. This extremely low price along with falling demand will only increase the stockpile of Oil, further reducing prices and adding to economic woes.
The risks of having costly stranded assets are growing only more obvious. There used to be a lot of misinformation from the Industry stating that natural gas is a better form of energy than Crude etc. and that it burn least amount of hydrocarbons and also emits the least amount of carbon in the air.
Reports now suggest that natural gas is no more better than other forms of fossil fuels. In fact the way it is drilled from the oil bed can add even more carbon particles into the atmosphere.
Experts are of the view that the kind of drilling used in most types of drilling can be extremely harmful to the environment. The collapse of the oil economies will only further add to the economic woes of the world and hamper supply chains of energy unless countries immediately shift to greener forms of energy which is hard to do.
The oil prices are already falling in the US due to the rising corona virus cases. This extremely low price along with falling demand will only increase the stockpile of Oil, further reducing prices and adding to economic woes.
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