EMERGING INVESTMENT THEMES FOR TODAY’S STORAGE BUSINESSES

The investment environment in the light of IMO 2020, COVID and the acceleration towards energy transition THE CURRENT REALITY AND THE IEA PERSPECTIVE LIFE in 2020 is about COVID-19 and energy transition. We still do not have a clear answer for either. What is clear is that the world will decarbonise. Over time, fossil fuels will play a diminished role. The pace of change is still not clear. Without doubt there will be a repositioning in the tank storage sector and there will be localised casualties. Increasingly, investment is going to be driven by the requirements to be sustainable and green. But the world’s fuel requirements will not back-flip overnight. The effects are highly regional, and this will determine storage demand. According to the latest World Energy Outlook from the International Energy Agency (IEA): Global oil demand has dropped by around 10% in 2020, but it is then set to recover to 2019 levels by 2022/23 and will still grow until beyond 2030. Oil demand in advanced economies has already peaked and is well below the highs of 2005. It is expected to fall by around five million barrels per day between 2019 and 2030. Oil demand growth will continue...