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Let’s put the size of the oil market in perspective.
The world’s average daily production of oil is 80.6M barrels. Taking the most recent OPEC basket price of $43.12/barrel, that means the world spends close to $3.4B a day on petroleum, wholesale.
Naturally, once we consider the value of refined products, it goes up more. The annual crude oil market is in the neighborhood of $1.3T
In their rescue plan, the EU has committed to set aside 25% of the $825B to spend for renewables.
However, this budget won’t be spent in a year. Given the kind of projects being discussed, it’s likely that the “COVID rescue plan” will be spread out over the next five years.
The EU’s plan, therefore, implies $206B on renewable energy over the next couple of years.
Spent Correctly, the Money Could Impact Crude Prices
Since the beginning of the year, over three-quarters of the world’s new commitments on renewable spending has come from the EU.
The EU, on the other ...
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