Op-ed: For Big Oil, this crisis will be different, and it may be irreversible

that, while there might be asset strandings in the industry as a result of climate change, it wouldn't be their assets that got stranded. Somehow, the oil industry was composed of dozens of major companies, all of whom would be the ones producing the last barrel of oil as the world moves away from fossil fuels.

Conveniently for the industry, the oil price that most companies used to "stress test" their portfolios against a low-carbon future was around $40/barrel--basically the level at which these companies break even.

The industry, at least those companies that survive the downturn, needs to prepare for a very different kind of future, one in which volatility and uncertainty around demand will rule the day. This crisis is confronting the industry with a stress test that mirrors the sort of demand shock it could face in a decarbonizing future. Just last summer, Mark Lewis witharguing that advances in electric vehicle technology would eventually force the price of oil down to $10-$20/barrel — precisely where it is trading today, though at the time the idea was derided as unthinkable. What the current situation makes clear is that few if any oil companies can survive that sort of environment.

So what can be done? The industry -- at least those companies that survive the downturn — needs to prepare for a very different kind of future, one in which volatility and uncertainty around demand will rule the day, and the only companies that attract capital will be the ones with detailed, specific and ambitious plans for managing the transition, and even pivoting to renewable energy — or for winding down their assets in an orderly way.

The petrodollar is dethroned

Completely agree, I expect that we are gonna see how Oil becomes 'rubbish' due to low demand and electric vehicles, in the middle and long term. There will be no Rebound which we are gonna see, that's just a 'breather'

Articles like this make me SO bullish.

Completely agree, I expect that we are gonna see how Oil becomes 'rubbish' due to low demand and electric vehicles, in the middle and long term. There will be no Rebound which we are gonna see, that's just a 'breather'

OH, OIL SHORTAGES XD

Gasoline ¢50 per Gallon!!!!!

Again, seems the perfect time for some companies to do a bit more shifting to renewables. Yeah, I know, so simple, not so simple, right? Guess we'll see who navigates the best.

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