Global demand for oil is returning, says ConocoPhillips

According to the American mining company ConocoPhillips, global demand for oil is returning to 100 million barrels per day. Oil is said to prove to be an essential part of the energy mix regardless of the coronavirus pandemic.

This is a completely different view than that recently offered by the competing mining company British Petroleum. On the contrary, it sees that the coronavirus pandemic has long-term consequences for global oil demand. According to Dominic Macklon, Vice President of ConocoPhillips, it is still necessary to calculate with a high degree of uncertainty throughout the next year.

Confidence in the resumption of oil demand is also reflected in ConocoPhillips’ planned investments. These are expected to be just below the originally planned level of $ 6.6 billion next year. Miners extracting oil from the sea shelf were the hardest hit by the coronavirus crisis. Extraction costs are higher in these areas than in deposits where oil is better available.

If the price of black gold falls, the profitability of shelf oil fields falls. The same goes for fracking. Only ConocoPhillips had to reduce oil production from less accessible deposits in the worst phase of the coronavirus crisis. Now it is resuming their operation.

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