Expert Chaslau Koniukh
  • Companies
  • Global investment
  • Investors
  • Terminology
  • Economy
  • Stock Market
  • World exchanges
  • Tech and Marketing
environmental agenda
Analytics

Analyst at BCS World Investment: the environmental agenda limits the development of the oil business

09.01.2022
2 min read

How the environmental agenda will affect oil producers

The environmental agenda is becoming increasingly relevant not only in business circles, but also in trade and political relations. It also affects investment processes, and industries with high emissions, such as the oil industry, are under pressure. Investments in green energy and other environmental projects are increasing, while the use of fossil resources is decreasing. In this regard, representatives of traditional industries have a lot of questions about further development.
According to the analyst of BCS World of Investments, in connection with an increase of interest in alternative energy sources, energy companies that offer coal and oil are losing their usual markets. It makes sense that for investors such industries are becoming less attractive, and in order to at least somehow attract capital, industrialists implement programs to reduce harmful emissions.
Coal was the first fossil fuel that countries began to reject en masse. Some European Union countries have already completely shut down the production of this fossil fuel and shut down power plants that used the raw material. Now it’s turn for the reduction of oil consumption, and the pandemic has played a major role in this trend. Decreased demand has caused the raw material prices to plummet and triggered a crisis on the market. Investors, in turn, began to get rid of oil assets in favor of more environmentally friendly, and the technology sector was an excellent option. To stay afloat and reduce the damage from falling prices, oil giants began to report the introduction of a strategy to reduce emissions and transition to green energy.environmental agenda-2According to the global plan, carbon dioxide emissions should reach zero by 2050. In a global sense, this goal sounds very ambitious, but it should be understood that not all countries can achieve it. For example, China has announced a deadline of 2060, and with the pace of development of its economy, even this sounds very optimistic.
As for the demand for oil in the conditions of emissions reduction, the analyst singles out several scenarios. One of them assumes achieving peak demand for raw materials by 2030, and then the decline will be observed. OPEC, in its turn, expects the peak to be in 2040 thanks to steady demand from India and China. Based on these assumptions the industry will be actively developing for 10-20 years, after which the market will gradually shrink and the competition between producers will only grow. However, we should take into account the fact that global processes can be affected by factors that cannot be predicted, as it was with COVID-19. Therefore, one should not give up on the oil industry in advance.

Tags: Analytics
0
Previous Post Flat in trading as an option to make a profit on the exchange Next Post PetroChina: scope of activities and earnings overview

You Might Also Like

prospects of the dollar
Analytics
Ray Dalio: What are the prospects of the dollar and the yuan in the world market
14.01.2022
Factors affecting stocks
Analytics
Analysts highlighted factors affecting stocks and global trends
29.04.2021
Tesla Inc
Analytics
Tesla Inc. is due to enter the S&P 500 Index: analysts overview
20.11.2020
Analytics
Experts of Saxo Bank and Chaslau Koniukh: investments in high quality companies are still relevant
21.10.2020
fall in prices
Analytics
Fall in gold prices will happen by the end of the year: the opinion of the analyst of Freedom Finance
24.04.2021
Goldman Sachs Bank
Analytics
Goldman Sachs made a forecast for the S&P 500 Index for this year
28.06.2021

Popular Posts

  • Businessman Chuck Feeney: the man who gave the world Duty Free
  • Field of activity of the American Monsanto Company Corporation
  • Spain’s economy performs best in the EU
  • Li Ka Shing: How can success be achieved without money and education?

Editor's Picks

Chaslau Koniukh
Analytics

American bankers from JPMorgan and Goldman Sachs advise to invest in gold: review by Chaslau Koniukh.

Press Secretary
17.08.2020
Expert Chaslau Koniukh
Analytics

Chaslau Koniukh on the analysts’ opinion on the key stake size change soon

Press Secretary
18.06.2020
expert Chaslau Koniukh
Analytics

Chaslau Koniukh: Internet trade market in Russia may reach 2.78 trillion rubles.

Press Secretary
30.05.2020
Will the U.S. oil shale industry be able to quickly recover from the crisis: A Review by Chaslau Koniukh
Analytics

Will the U.S. oil shale industry be able to quickly recover from the crisis: A Review by Chaslau Koniukh

Press Secretary
16.05.2020

Popular Posts

  • Businessman Chuck Feeney: the man who gave the world Duty Free
  • Field of activity of the American Monsanto Company Corporation
  • Spain’s economy performs best in the EU
  • Li Ka Shing: How can success be achieved without money and education?
  • Skolkovo analysts: the Russian energy market is suffering losses
Expert Chaslau Koniukh
  • Facebook
  • Twitter
  • Instagram

© 2024 CHASLAU KONIUKH. ALL RIGHTS RESERVED. Expert in marketing and project management, international investments, financial analyst.

Menu

  • Biography
  • Companies and corporations
  • Global investment
  • Investors and Entrepreneurs
  • Economy
  • Market terminology
  • Stock Market
  • World exchanges
  • Tech and Marketing
  • Analytics