If the world succeeds in curbing the increase in global warming as agreed upon in the 2015 Paris Climate Change Accord, it will come at the cost of the price of oil, says Wood Mackenzie. The energy research consultancy projects that a clean energy economy will cause fossil fuel demand to crater. By 2050, the benchmark Brent crude could fall to $10 a barrel. It is currently about $65 and last April 22, 2020, it fell to under $20.
With an accelerated transition away from hydrocarbons, demand for oil could drop by as much as 70% by 2050. Beginning in 2023, demand will begin to fall and then accelerate, potentially entering “terminal decline.” By 2030, the price could be between $37 and $42 a barrel; by 2040, it could be between $28 and $32, by dropping to between $10 and $18 by 2050.
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