London-Soon the price of Oil could plunge as a little as $10 per barrel by 2050 if the world succeeds in electrifying the energy market and accomplishing Paris Agreement goals as per the consultancy.
Wood Mackenzie, the Energy research and consultancy mentioned in a report that if the world leaders didn’t decisive action for limiting global warming to degree Celsius by almost 2050. As it may set out in the landmark Paris climate accord and soon the oil demand may drop significantly.
Under its accelerated energy transition scenario, Wood Mackenzie said that energy may increasingly be electrified by 2050 by squeezing out the most polluting hydrocarbons like oil.
Under such a scenario, the demand for oil may fall almost 70% by 2050 from this current level. Wood Mackenzie highlighted the demand for the oil which may start to fall from almost 2023 under this scenario and can decline quickly accelerate thereafter. This will take place through years on year falls of around 2 million barrels a day.
As per the report, the oil prices could now go into “terminal decline,” with international benchmark Brent Crude falling in between $37 and $42 a barrel by around 2030.
Brent crude future traded at $66.29 a barrel during morning deals in London, down by almost 0.4%. Wood Mackenzie mentioned that the oil prices may slide to between $28 and $32 a barrel almost by 2040. Although it slipped between $10 and $18 a barrel in 2050.
Almost 200 countries ratified the Paris climate accord in 2015by agreeing to pursue efforts for limiting the planet’s temperature by enhancing to “well below” 2 degree Celsius which is above pre-industrial levels and for pursuing efforts to cap the temperature rise at 1.5 degrees Celsius. It remains under main focus ahead of COP26, although some of the climate scientists now believe which is hitting the latter target is already “virtually impossible.”
Ensure, a United Nations analysis was published on 26th Feb which was founded the pledges made by the countries globally for curbing greenhouse gas emissions which were “very far” from the profound measures required for avoiding the most devastating impacts of climatic breakdown.
Ann-Louise Hittle, vice president for macro oils at Wood Mackenzie, based on the consultancy’s report was a scenario rather than a “base-case forecast.”
She mentioned, “Even so, the oil and gas industry cannot afford to be complacent. The risks associated with robust climate-change policy and rapidly changing technology are too great.”