In meteorology, the “Fujiwhara effect” is a phenomenon that occurs when two cyclones come together to form a larger storm. In April 2020, a Fujiwhara effect of sorts hit the global oil industry when an oil price war and a global pandemic combined and sent oil prices plummeting, and the industry itself into crisis. Amid the aftershock of the oil industry taking this one-two punch, speculation rages over when we will reach “peak oil demand”. UK energy major BP is the latest to forecast that demand will peak early this decade. Despite the obsession with the concept, what is arguably more important than peak demand is the notion of “peak value” — the ability of oil and gas companies to secure adequate investment and returns. This lack of investment into the industry is the single biggest threat to its survival, a point not lost on companies that have already been scratched off the list of green investors.
FT 9th Nov 2020 read more »
Scottish Conservative leader Douglas Ross will argue today that protecting North Sea oil and gas jobs should be prioritised over climate change targets. The Moray MP will warn that “too much focus” has been put on managing the decline of the North Sea and not enough on ensuring its survival. The remarks, due to be made from Aberdeen in an online speech to more than 100 industry workers, could prove controversial with supporters of an accelerated transition away from fossil fuels. In his speech, Douglas Ross will also call for the Scottish and UK Governments to work more closely together on their strategy and policy towards the North Sea and saving oil jobs.
Energy Voice 9th Nov 2020 read more »