Journal of Critical Infrastructure Policy • Volume 1 , Number 2 • Fall / Winter 2020
The COVID-19 Pandemic : Energy Market Disruptions and Resilience
Alexander Q . Gilbert 1 , 2 and Morgan D . Bazilian 3
1
Corresponding author , Nuclear Innovation Alliance , alex . gilbert @ powerandresources . com
2
Fellow , Payne Institute for Public Policy , Colorado School of Mines
3
Director , Payne Institute for Public Policy and Professor of Public Policy , Colorado School of Mines
Abstract
Direct risks and indirect effects from the COVID-19 pandemic have impacted the operations and resilience of global energy markets . This article considers several aspects of the impacts and responses of these markets as well as energy sector resilience . All major energy markets have been affected , with unprecedented decreases in oil and natural gas demand , alongside operational stress for electric systems . Construction , maintenance , and operations in the industry face personnel constraints and limitations . Meanwhile , the disruptions from public health measures have tested the market ’ s abilities to reliably manage severe demand destruction . Moving forward , there is a need to include demand shocks within energy resilience planning frameworks , and to prepare for multiple concurrent crises .
Keywords : Energy market , Global Energy , Energy Resilience , Pandemic Energy Impacts
Introduction
Due to their nature as critical infrastructure , energy systems and markets should be designed to handle low probability , high impact events . Energy resilience , or the ability to “ bounce back ” is central to the continued , safe operation of energy services during times of natural and manmade disaster . Without electricity or other energy supply , relief and recovery efforts could be severely compromised . Many energy systems and operations had contingency plans for events like a global pandemic , though in many jurisdictions , especially in the Global South , these plans were constrained by budget and personnel limitations . COVID-19 ’ s direct risks to personnel and indirect market effects have severely stressed existing energy systems and their resilience . Although the systems have , overall , performed well , with limited to no interruptions to energy service provision in OECD countries , the pandemic ’ s long duration threatens to exacerbate other resilience risks for the energy system . After COVID-19 , energy industries should evaluate their response to
73 doi : 10.18278 / jcip . 1.2.5