Oil has a future, but not within fuels. Energy Transition is at the forefront. Experts expressed it at the Energy Oil & Gas Summit, along with other topics on the impact of oil prices on consumers and citizens’ pockets.
Experts from IHS Markit and GMEC Consulting agreed that producers and consumers must be responsible for the environment, even beyond costs in the face of an energy transition situation.
In that sense, oil companies should diversify their production and address the possibilities for cleaner energy.
Covid-19 and the transition
The panelists said that the Covid-19 pandemic had improved the energy transition given all the low-emission mobility alternatives the market offers consumers.
Whether to safely distance themselves or stay away from mass transit, people are becoming familiar with cleaner and healthier mobility solutions from bicycles to electric scooters.
Likewise, corporate bankruptcy and the economic recession have led to different energy dynamics and divergent consumption trends.
Gradual steps in the transition
The gradual preference for lighter oil is destroying demand in some sectors on the one hand and increasing distinctive markets around the world on the other. Participants said that long-term forecasts expect lower oil price trends for longer in the coming years.
Also, the preference for a lighter oil has to do with strategic use, conscience, and reputation. Today, companies must maintain a cleaner and friendlier image with their customers.
So will falling oil prices affect your pocket? What can you do to protect your money?
Although the forecasts predict lower trends for longer concerning oil prices, experts said final inputs like gasoline could maintain their costs beyond crude dynamics. This situation responds to international supply, domestic demand, and market allocation.
In that regard, the participants encouraged consumers to gradually take care of hybrid and electric solutions and envision them in future optimization.
Although the current costs of cleaner alternatives are considerable, the leaders invited the audience to convert from consumers to prosumers and explore future global requirements.