Global — Amid a global economic recession caused by the COVID-19 pandemic, the last 2 days have seen G20, OPEC, Russia and other oil-producing nations hold extraordinary virtual meetings to negotiate a coordinated plan to restrict production aimed at preventing a historic plunge in the industry. An agreement to end the oil price war between Saudi Arabia and Russia was reportedly reached, as OPEC and other nations committed to oil production cuts. The meeting today marked the first time that G20 oil ministers came together to specifically discuss energy issues.
May Boeve, Executive Director of 350.org, said:
“This agreement is a fudge – it does not address the structural overproduction of oil and it doesn’t get us towards what’s really needed, a managed decline of the fossil fuel industry.
The oil price collapse is also a stark warning to any investor who thinks that they can still profit from funding fossil fuel companies.
In the oil price war of all against all, the only real takeaway is that petrostates and the fossil fuel industry will do anything to capitalize on resources they know they will not be able to extract. The industry’s myth of its reliability and irreplaceability is broken.
Meanwhile, oil and gas executives have been quick to knock on the doors of power to ask for money and rollback of essential environmental regulation.
Instead, governments need to put workers and the planet before fossil fuel executives.
In responding to the covid-19 crisis, we must rapidly accelerate the process of transitioning our economies away from coal, oil and gas while centering dignified work, healthcare, and economic justice for everyone. People deserve a just recovery.”
Around 500 organizations, from NGOs to Labor Unions to community justice groups, have signed on to a Just Recovery principles platform calling on governments to create millions of decent jobs that will help power a just transition for workers and communities to the zero-carbon future we need.