In case you haven’t seen it in the news recently, the petroleum production and refinement industries are really hurting right now.
As of the writing of this post (March 12th, 2020), crude oil prices are hovering around $31 a barrel. This is the lowest price oil has hit since the aftermath of the terrorist attacks in September of 2001.
There are at least two significant factors that are affecting oil prices right now: an international price war between Saudi Arabia, Russia, and other nations, and the global response to the outbreak of the COVID-19 Coronavirus.
As oil prices continue to drop, what does this mean for the renewable energy sectors and for the solar industry, in specific?
Answer: It’s Not Great for Solar, Either
When entire countries reach for the next ‘gulp’ of their energy, they’re going to go with what is cheapest and most available to them. It’s the path of least resistance, and there is rarely any attention paid to where that energy comes from.
For almost a decade, solar power has been an especially attractive energy production option, especially when oil prices were more than twice as high as they are now (a scenario we were in just two years ago).
So, what do you think is going to happen to new solar power initiatives when oil prices tank? Well…there simply isn’t going to be as much motivation to ‘go solar’ when fossil fuel-derived energy is such a vastly cheaper alternative.
Weathering the Storm
Yes, things are bad right now—not just within the oil markets, but within the US economy as a whole. All it takes is a single glance and the Dow Jones Industrial Average to be reminded of our currently dire state of economical affairs.
Does this mean that if oil prices stay low, the solar power industry will suffocate? Not necessarily.
Remember that oil prices are very temporary. As geopolitical climates change, and as the Coronavirus phenomenon blows over (as it eventually will), things are likely to return to normal.
For now, the solar professionals at Urban Solar are just as passionate and motivated to help you to go solar in 2020.
Want to learn how much you could save on your energy bills by making the leap to solar power? Contact us today, and inquire about our free energy assessment.