At present there is no shortage of public discourse about the death of fossil fuels in general, and oil in particular, in the wake of the Covid-19 pandemic. Unquestionably, the pandemic has resulted in near-term crude oil demand destruction on a scale the market has not seen before.
Prior to the emergence of the pandemic in March, global oil demand projections for 2020 stood at around 100 million barrels per day (bpd), with demand growth projections in the range of 1.1 to 1.3 million bpd.
Subsequently, with Covid-19 at its height in April, came projections of annual demand declines of as much as 20 million bpd with airlines grounded, vehicles parked firmly in driveways and whole economies in lockdown. Inevitably, value destruction in the oil and gas sector followed as the likes of BP, Shell and Total