Royal Dutch Shell has attributed its net loss of $21.7 billion in 2020 to the Covid-19 pandemic which reduced demand for global energy.
In a statement made by the company, its net loss which rose from $15.8 billion in 2019 to $21.7 billion in 2020 is similar to that of British rival, BP which recorded a net loss of $20.3 billion in the same period.
The economic effect of the Covid-19 pandemic on the energy sector is that as governments around the world shut their borders and airlines, market demand for oil dropped resulting in dramatic fall in oil prices which negatively impacted earnings by companies in the oil sector.
While looking on the bright side of things, Shell declared that distribution of the Covid-19 vaccine around the world is gradually improving global economic activities which in turn would impact market demand for oil.
