Economic and Sociopolitical Implications of the COVID-19 Pandemic in Global Energy Markets

ABSTRACT

The article presents the economic and sociopolitical consequences of the pandemic COVID-19 in global energy markets. The relationship between the decline in social, economic activity, and energy consumption is analyzed. Traditional linkages between energy supply and demand have been eroded by the changing economic and social conditions of the world. Forecasts of the decline in global energy investment for 2020 are based on data on the severity and duration of the ongoing health crisis, the economic slowdown, and the large share of uncertainty surrounding these factors. A comprehensive method using entropy indicators is proposed as one of the forecasting tools. The basic forecast of many authoritative international economic organizations for 2020 is a large-scale global recession caused by restrictive measures of socioeconomic activity. With the gradual opening of economies currently in isolation, the recovery is U-shaped and is accompanied by a significant permanent loss of economic activity. The work explores investment and financial trends in all areas of energy supply, efficiency, and research and development (R&D). Current indicators and analytical materials and information on risks in the field of energy security and sustainability were provided. The impact of a large-scale global recession caused by months of restrictions on movement, social, and economic exclusion is quantified. © 2022, The Author(s), under exclusive license to Springer Nature Switzerland AG.