How a drop in oil prices today could fuel tomorrow's energy transition

Before spiking Thursday, oil prices fell into negative territory this week, as much of the world shelters in place. The pandemic has also fueled a 6 percent drop in greenhouse gas emissions this year, the biggest drop since World War II.

So, what does it mean for the climate and the future of energy?

“I think there are opportunities and there are also some challenges here,” said Scott Tong, a correspondent for Marketplace. “We've lost more than 20 million jobs. That's about 1 out of 8 of us in the workforce, so something has to change.”

One opportunities, he said, may be to lock in some level of telecommuting. People aren’t driving to work, and that’s reducing both demand for oil and emissions. Another is the potential for changes in the oil supply to drive the adoption of electric cars or widespread transit use.

“A lot of oil companies are in tough shape and so they're not investing in finding more oil,” Tong said. “What happens down the road is, if our demand comes back, then there won't be enough and prices are going to go up. And when gasoline is more expensive, greener options become much more affordable.”

Tong spoke with MPR chief meteorologist and Climate Cast host Paul Huttner. Hit play on the audio player above to hear their conversation.