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The World Is Still Producing More Oil Than It Needs. Why?
Article

The World Is Still Producing More Oil Than It Needs. Why?

Today, petroleum producers around the world will start shutting down wells after the Covid-19 pandemic caused demand to plummet. What took them so long?

Wired, 2020


Editorial Rating

9

Qualities

  • Eye Opening
  • Overview
  • Hot Topic

Recommendation

You likely saw the reports about how COVID-19 is affecting the environment: pollution dropping up to 30% in big cities in China and the United States, swans and fish swimming in the suddenly clear waterways of Venice, coyotes frolicking on the normally bustling beaches and streets of San Francisco. Reduced human movement means nature can take back her own. But reduced human movement also means reduced demand for fuel. Daniel Oberhaus from WIRED offers readers a crash course in how the oil industry is handling the unprecedented drop in demand sparked by the global pandemic.

Take-Aways

  • On April 20th, 2020, decreased demand and a dearth of storage space sent oil prices plummeting.
  • OPEC countries, the United States and Russia are reducing production to steady oil prices.
  • “Shutting in” oil wells can make wells less productive when they reopen.

About the Author

Daniel Oberhaus covers energy and space exploration for WIRED. His book, Extraterrestrial Languages was published in 2019.