Grahame Morris MP has tabled an Early Day Motion (EDM), outlining the effects of the Covid-19 pandemic on the oil and gas sector. The Easington MP is calling on government to intervene and save the industry, and to ensure the protection of jobs during the ongoing transition to renewable energy sources.
The oil and gas industry has seen a huge reduction in demand, owing to the fact that people are mostly staying at home, and large parts of the economy that use a lot of energy have ceased operations. The EDM notes that, as a result, the price of oil now stands at just over $20 per barrel, compared with over $70 per barrel this time last year.
Rystad Energy, an independent energy research and business intelligence company which provides data, analytics and consultancy services to the global energy sector, published its latest public report on 7th May. The report found that global demand for road fuel is down 11% so far this year, jet fuel is down 33%, and demand for all other fuels is down 7% compared to 2019.
The EDM notes that the current situation could see 3,500 workers displaced by as early as September. Furthermore, the drilling sector have been informed that there will not be any upturn in activity until 2020, and Subsea sector contracts are being ended and vessels tied up. It is clear that the Covid-19 pandemic could prove fatal for an industry that is already facing the global transition to favoured renewable energy sources.
Grahame Morris MP said, “The significant toll that the Covid-19 outbreak is taking on the oil and gas industry is becoming increasingly clear. It is vital that, even as the UK makes the necessary transition towards a carbon neutral state, the sector is protected. As such, I would urge the government to intervene, and ensure the protection of jobs at this uncertain time.”
Read the full text of the EDM (#439) below: