The COVID-19 pandemic may have negatively impacted the energy sector but it has opened up a window of opportunity to reset and realign the sector.
Both demand in electricity and petroleum have dropped significantly as economic activity came to a halt since the COVID-19 lockdown started.
The lockdown also halted private and public transport, effectively reducing fuel demand and resulting in the closure of some retail stations.
Data from the Department of Energy showed oil demand decreased by 23 percent from 14 million liters in the first half of 2019 to 10.8 billion liters in the same period in 2020. Moreover, at least 10 percent of fuel retailers, particularly in areas that are not on main roads, have closed down.
Energy Secretary Alfonso Cusi said, “Demand for oil dropped because our people are not able to move.”
In April, US oil prices traded in negative territory for the first time ever – hitting up to minus 37 dollars per barrel.