BP, Energy News, ET EnergyWorld

LONDON:

Fossil fuel consumption

is set to shrink for the first time in modern history as

climate policies

boost renewable energy while the

coronavirus

epidemic leaves a lasting effect on global energy demand, BP said in a forecast.

BP's 2020 benchmark

Energy Outlook

underpins Chief Executive Bernard Looney's new strategy to "reinvent" the 111-year old oil and gas company by shifting renewables and power.

London-based BP expects global economic activity to only partially recover from the epidemic over the next few years as travel restrictions ease. But some "scarring effects" such as work from home will lead to slower growth in energy consumption.

BP this year extended its outlook into 2050 to align it with the company's strategy to slash the carbon emissions from its operations to net zero by the middle of the century.

It includes three scenarios that assume different levels of government policies aimed at meeting the 2015 Paris climate agreement to limit global warming to "well below" 2 degrees Celsius from pre-industrial levels.

Under its central scenario, BP forecasts COVID-19 will knock around 3 million barrels per day (bpd) off by 2025 and 2 million bpd by 2050.

In its two aggressive scenarios, COVID-19 accelerates the slow down in oil consumption, leading to it peaking last year. In the third scenario, oil demand peaks at around 2030.

In the longer term, demand for coal, oil and

natural gas

is set to slow dramatically.

While the share of fuels has shrunk in the past as a percen....

read more from energy.economictimes.indiatimes.com