Covid-19 pandemic’s ‘great reset’ makes energy firms invest more in renewables, says executives

The economic trauma caused by the coronavirus pandemic persuaded energy companies to step up investments in renewables, hydrogen and other low carbon alternatives, but fossil fuels will remain dominant for the foreseeable future, industry executives said.

Reeling from the onset of the pandemic, global oil consumption shrank by more than 20% in the second quarter and prices hit their lowest in decades, making companies rethink how fast they should make the transition away from reliance on oil and gas.

“Everyone’s talking about this great reset … What do we need to do to survive this?” Arif Mahmood, Petronas’ executive vice president and CEO of downstream, said at the virtual Platts APPEC 2020.