Epidemic Hits Energy Demand Hard, Shell Oil Takes Huge Loss in 2020

Oil giant Royal Dutch Shell today reported a full-year loss of $21.7 billion for 2020. Blame it on the 2019 coronavirus disease (COVID-19) outbreak hitting global energy demand hard.

In a statement, Shell said they moved from a $15.8 billion profit in 2019 to a huge loss last year.

Shell rival British Petroleum (BPPlc.) recently reported a similarly disastrous situation, with a loss of $20.3 billion in 2020.

Both companies have laid off thousands of employees in response to the economic impact of the Epidemic.

As governments closed their borders at the end of the first quarter of last year, airlines grounded their flights, causing oil prices to plummet and even briefly go into negative territory.

However, oil prices have since recovered significantly. With the progress of the vaccine program, the economic outlook has turned better, oil prices have rebounded sharply back to the level before the epidemic on the 2nd.