Force Majeure in Post COVID-19: The Implication for Future Energy Law Contracts

The global uproar of coronavirus disease, codenamed COVID-19, remains one greatest challenge at least in our present time. The energy sector, in particular, has faced economic doom, as prices of crude oil dipped flatly below $0 on Monday, 20 April 2020, due to low demand amid containment lockdown measures of various governments worldwide. More-so, the performance of existing energy contracts, especially time-bound oil and gas supply, has become impracticable. This has resulted in contracting parties invoking force majeure clauses as an excuse. There have arisen divergent views as to whether COVID-19 is an acceptable force majeure, and such unsettled views could arguably impact energy law contracts. This study analytically considers the future implication of force majeure in post-COVID-19 on energy law contracts. The study lends a forward-thinking approach to crafting future energy law contracts.