6 ways coronavirus is changing energy and the climate

The Covid-19 virus alone would have had a serious impact on oil prices but when Russia and Saudi Arabia failed to agree on a production pact the commodity took an even bigger battering. Oil prices have now tumbled to their lowest level in 18-years.

“The Covid-19 pandemic is having a catastrophic impact on oil demand. How long the travel bans and lockdowns that are driving the fall in demand continue is anyone’s guess, but it seems likely to be many months,” said the head of research and intelligence firm Westwood Global Energy Group.

Nations that depend on strong oil prices are likely to experience recessions adding to the woes created by the virus. Historically oil prices have always recovered in time and when the lockdowns end across the world prices could rally. However, even when the world does get back to some semblance of normality the market will remain flooded with oil, which will lead to prices remaining under pressure.

One positive to come from the lockdowns is the environmental impact. With hardly any cars on the roads, few planes in the skies and heavy industry and manufacturers shut down global carbon emissions have plummeted.

In places like Venice that in normal times would be flooded with tourists the lockdown and lack of people has resulted in the city’s famous canals becoming cleaner and clearer than they’ve been for decades. If there has been one winner from all this, it’s nature.

According to experts, the coronavirus pandemic is also expected to force airlines into following stricter carbon emissions limits in future. Back in 2016, a UN deal between 192 countries agreed to limit the net carbon emissions produced by international flights at 2020 levels. It remains to be seen whether this agreement will be altered as a result of the virus.

Images captured from the European Space Agency’s Copernicus Sentinel-5P satellite, have shown sharp reductions in nitrogen dioxide concentrations across several European cities during the coronavirus pandemic.

If there has been one winner (albeit temporary) from all this, it’s nature.

With normal daily life being disrupted by the virus, people are changing their daily energy usage habits. With more people working from home, energy consumption for domestic customers is going to increase dramatically.

Businesses, on the other hand, will see their usage drop as offices and shops lay empty. Industry and manufacturing companies too will have altered their usage due to either being closed entirely or introducing shift working to enforce social distancing.

For more read: How will Energy Suppliers be impacted by the Coronavirus Pandemic?

Many people that would normally have to commute to their places of work are now having to work from home if they can.

This experience will be something of a culture shock to many and it’s not just employees, but employers too have had to overcome many issues and hurdles to ensure that their workforce can stay functioning away from the office. Thanks to the internet and communications technologies most companies can stay in contact and functional.

With most business workforces now working from home, a B2B energy supplier will see the energy usage of their customers decline. This can cause issues with billing and overcharging. To counter this, energy suppliers should request meter readings from all their customers to reduce the risk of inaccuracies.

For more read: How will Energy Suppliers be impacted by the Coronavirus Pandemic?

Whether you support them or not there’s no denying that the Coronavirus has seen the likes of Extinction Rebellion effectively silenced and their antics put to an end (for now). No doubt once the current crisis is over, they will be back with a vengeance, but will the public tolerate their stunts following a period of sustained lockdown? Only time will tell.

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How will Energy Suppliers be impacted by the Coronavirus Pandemic?