Caixin Summit: Fossil Fuel Demand Will Bounce Bank After Pandemic, Predicts IHS Markit Executive

Global oil demand will return to 2019’s level by 2022, and fossil fuels will remain a main driver of the world’s economy, Daniel Yergin, vice president of information provider IHS Markit Ltd., told the Caixin Summit in Beijing via video link on Saturday.

With lockdowns around the world hitting demand for oil, global oil demand will decline by 10% this year from last year’s figure of 99.77 million barrels per day, said the Pulitzer Prize winner.

“The $87 trillion world economy rested on fossil fuels, which provide 84% of the world’s energy, so that’s not something you change overnight,” said Yergin.

Two critical oil consumers, China and India, are seeing their demand recover. And a possible vaccine for the novel coronavirus will be the most important driver of economic performance, he added.

Speaking on the development of clean forms of energy, Yergin warned that governments’ policies to end the pandemic or reduce its economic impact will result in their debt ballooning, which could dampen the willingness of governments to make the investments needed to transition to a greener economy.

Contact reporter Lu Yutong (yutonglu@caixin.com) and editor Joshua Dummer (joshuadummer@caixin.com)

For more on the 2020 Caixin Summit, click here.

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