Oil is Dead
Oil nosedives while renewables rise
U.S. President Donald Trump has proven to have a soft spot for flatterers, quacks, polluters and coal companies. Little wonder, then, that when oil prices plunged in mid-April, Trump tweeted, “We will never let the great U.S. Oil & Gas Industry down” (the random capitals are his).
In a story headlined “Oil Companies Are Collapsing, but Wind and Solar Energy Keep Growing,” The New York Times said renewable energy sources would generate a record 20.7% of electricity in the U.S. this year, up from 18% last year. “While work on some solar and wind projects has been delayed by the [virus] outbreak, industry executives and analysts expect the renewable business to continue growing in 2020 and next year even as oil, gas and coal companies struggle financially or seek bankruptcy protection.”
"We expect that global oil demand in 2020 will fall by 9.3 million barrels a day versus 2019, erasing almost a decade of growth.”
The pain came home to roost when oil giant Exxon last week announced a second-quarter loss of US$1.1 billion, with gross revenues of $32.6 billion underperforming analyst forecasts by a hefty $5.5 billion. Exxon shares have fallen 38% so far this year – and oil prices could tumble again.
Meanwhile, the Times reported that U.S. solar capacity – spurred on by falling prices for solar panels – grew 23% in 2019. “We blew through all of the projections,” said Caton Fenz, CEO of ConnectGen, a Houston-based developer of wind and solar power. “We’re surfing a long-term wave.”
https://www.corporateknights.com/channels/energy/oil-nosedives-while-renewables-rise-15965425/
Oil nosedives while renewables rise
U.S. President Donald Trump has proven to have a soft spot for flatterers, quacks, polluters and coal companies. Little wonder, then, that when oil prices plunged in mid-April, Trump tweeted, “We will never let the great U.S. Oil & Gas Industry down” (the random capitals are his).
In a story headlined “Oil Companies Are Collapsing, but Wind and Solar Energy Keep Growing,” The New York Times said renewable energy sources would generate a record 20.7% of electricity in the U.S. this year, up from 18% last year. “While work on some solar and wind projects has been delayed by the [virus] outbreak, industry executives and analysts expect the renewable business to continue growing in 2020 and next year even as oil, gas and coal companies struggle financially or seek bankruptcy protection.”
"We expect that global oil demand in 2020 will fall by 9.3 million barrels a day versus 2019, erasing almost a decade of growth.”
The pain came home to roost when oil giant Exxon last week announced a second-quarter loss of US$1.1 billion, with gross revenues of $32.6 billion underperforming analyst forecasts by a hefty $5.5 billion. Exxon shares have fallen 38% so far this year – and oil prices could tumble again.
Meanwhile, the Times reported that U.S. solar capacity – spurred on by falling prices for solar panels – grew 23% in 2019. “We blew through all of the projections,” said Caton Fenz, CEO of ConnectGen, a Houston-based developer of wind and solar power. “We’re surfing a long-term wave.”
https://www.corporateknights.com/channels/energy/oil-nosedives-while-renewables-rise-15965425/