Energy Markets in Times of Crisis

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April 23, 2020

LBJ In the Arena: April 22, 2020

LBJ Professor Dr. Aldo Flores-Quiroga, the former deputy secretary of energy for hydrocarbons at Mexico's Ministry of Energy, spoke with Marianne Kah, the former chief economist at ConocoPhillips and a past president of the U.S. Association for Energy Economics. They discussed the impact on oil markets brought on by the decrease in oil demand due to COVID-19, and whether the new deal announced by OPEC+ will be sufficient to bring oil production in line with demand. They also explored post-crisis potential futures for the energy industry while looking back to history for relevant lessons learned.

Deeper Dive   |    Additional Reading   |   Radio & Podcasts


Deeper Dive

Bonus Interview: World energy markets and COVID-19
On April 1, Dr. Aldo Flores-Quiroga, the former deputy secretary of energy for hydrocarbons at Mexico's Ministry of Energy, spoke with Bob McNally, president of the Rapidan Energy Group, about the world energy markets during the COVID-19 crisis.

Milenio TV interview: Dr. Flores-Quiroga discussed the outcome of the OPEC+ agreement with Mexican cable network Milenio TV (in Spanish).

Electric vehicle penetration and its impact on global oil demand: A survey of 2019 forecast trends
Marianne Kah
Columbia Center on Global Energy Policy, Dec. 17, 2019
Policymakers in a growing number of countries are supporting passenger vehicle electrification or a phaseout of fossil fuel passenger vehicles to reduce greenhouse gas emissions and improve urban air quality. To understand the trajectory of oil demand in this sector, it is important to comprehend the magnitude and timing of electric vehicle (EV) penetration. The pace of demand growth matters. If the world doesn't move off oil at a rapid rate, it is important that policy makers recognize the need for investment in new oil supplies to prevent supply shortages and accompanying oil price spikes.



Additional Reading

Energy transition: Coal as the canary
Yale Global Online, April 23, 2020
The COVID-19 pandemic offers a preview and possibly opportunity for a clean and just energy transition that supports workers and communities.

The drop that overflowed the barrel
Milenio, April 13, 2020
Four years ago, Mexico joined the Organization of Petroleum Exporting Countries and allies (OPEC +). However, our country was until yesterday in the headlines around the world by becoming a decisive factor in sealing the largest oil production cut agreement in history, an unprecedented pact to recover its international price.

Oil price war ends with historic OPEC+ deal to slash output
Marianne Kah
Bloomberg, April 12, 2020
The world's top oil producers pulled off a historic deal to cut global petroleum output by nearly a tenth, putting an end to a devastating price war but not going far enough offset the impact of the coronavirus pandemic.

Oil prices plunge as Mexico ditches Saudi-Russia production cut plans
Aldo Flores-Quiroga
Fortune, April 10, 2020
In a story outlining the current world oil production situation, LBJ's Aldo Flores-Quiroga, the former Mexican deputy oil minister who negotiated OPEC+ deals from 2016 to 2018, weighs in on what Mexico should do: "Mexico can and should join the international community in stabilizing the oil market. The production cut is both necessary and possible. It's the responsible thing to do domestically and internationally."

GBP/CAD trading sideways, looking for hints from oil prices
Aldo Flores-Quiroga
Currency Live, April 10, 2020
Dr. Aldo Flores-Quiroga weighs in on what Mexico should do to help stabilize the international oil market.

The oil price crash and the U.S. energy outlook
Marianne Kah
Currency Live, April 10, 2020
One of the consequences of the COVID-19 pandemic has been an intentional effort to bring much of the economy to a standstill to slow the spread of the virus.

Will G20 support for OPEC+ deal be enough to shore up oil market? (subscription required)
Financial Times, April 10, 2020
Ministers swing behind huge production cuts agreed by Saudi Arabia and Russia.

Saudi-Russia oil deal under threat as Mexico walks out of OPEC+ talks
Bloomberg, April 9, 2020
The COVID-19 pandemic offers a preview and possibly opportunity for a clean and just energy transition that supports workers and communities.

Sorry, but the virus shows why there won't be global action on climate change
Foreign Policy, March 27, 2020
Extreme measures to fight the coronavirus have raised activists' hopes for similarly drastic action on global warming. Here's why they’re wrong.

Q&A with Aldo Flores-Quiroga on Mexico's natural gas market development
Aldo Flores-Quiroga
NGI's Mexico Gas Price Index, March 27, 2020
"We are in urgent need of clarity from financial authorities and central banks around the planet about the course they will take. It’s a very positive signal that they are now talking and have begun to announce important measures, most notably the US spending bill. Hopefully at some point we will see coordinated announcements by the European Union, the G7 or the G20 detailing how aggregate demand support and global relief will be provided," said Dr. Aldo Flores-Quiroga.



Radio & Podcasts

Daily energy markets commentary — new Silk Road
Gulf Intelligence Podcast, April 14, 2020
Hatem Al Mosa, CEO, Sharjah National Oil Corporation; Carole Nakhle, CEO, Crystol Energy; and Dr. Aldo Flores-Quiroga, former deputy secretary of energy for hydrocarbons, Mexico's ministry of energy joined the live daily oil commentary to share their insights on current market dynamics.

The oil price crash and the U.S. energy outlook
Columbia Energy Exchange podcast, April 6, 2020
In this edition of Columbia Energy Exchange, host Jason Bordoff is joined by Arjun Murti, Bobby Tudor, and Marianne Kah to discuss the impact of the oil price collapse on the U.S. energy sector, shale oil production in the long run, and what this might mean for the clean energy transition.