Oil companies have had a hard year, but it doesn’t look like the pandemic did much to its failure. Over the years, oil companies have had to worry about their impending future of going oil-free. Since even before the pandemic, oil companies were looking at a decrease in demand that doesn’t suit them well and has made them go desperate.
Since the recent decrease in demand, sellers of oil have now resorted to paying buyers to take the oil off of their hands. Losing money and losing popularity, oil companies have been going through it. And the hurricanes that we’ve experienced over the past few months have not made it any better. They lost a ton of oil production due to the storms.
Most oil companies have stated that with or without the pandemic, they saw the downfall to the oil industry coming. Many people are going oil-free and are buying electric cars and eco-friendly items that make it harder for oil companies to sell their merchandise. There is an energy transition happening right now that is shifting away from oil demand. No one is interested in staying in an environment that is constantly polluted and harmful towards Earth.
With the recent distribution of the COVID-19 vaccines, the oil industry is looking forward to more sales and an increase in demand. Only time will tell when oil with get back to regular business, but for right now, the country is making strides to going oil-free.
What are your thoughts on the oil industry’s tough year? Let us know down in the comments.
This article originally published on GREY Journal.