World will reject oil and gas faster after pandemic – Novak

TASS Russian News Agency | Jul 2, 2020 at 3:51 PM

MOSCOW, July 2. /TASS/. Rejection of oil and gas consumption in the world will accelerate after the coronavirus pandemic, and the share of alternative energy consumption, on the contrary, will increase more than it was previously expected, Russia's Minister of Energy Alexander Novak said on Thursday.

"Everyone agrees on this. And we agree that the world's energy structure will change. A decrease in the share of hydrocarbons was already expected from 85% to 75% by 2040, with an increase in the share of renewable energy sources. Now, taking into account that what's happening, taking into account the fight against the pandemic, this trend is growing, in my opinion. I believe that the share of alternative energy sources will be much higher than expected by 2040," the minister said.

According to him, the share of hydrocarbons in the global energy balance will decrease to 65-68% by 2040. "This will happen partly due to a long recovery in demand for hydrocarbons. Despite the rebound [in oil and gas consumption] that we have seen in recent months, we will not reach previous levels this year. Perhaps this will happen only towards the end 2021," the minister explained.

Another reason for slower oil consumption is the benefits of telecommuting. "This means less consumption of oil, oil products, more use of Internet channels," the minister added.