Oil Market Will Tighten But Shale Should Prevent Supply Crunch
Concerns about a post-2022 supply crunch and price spike in oil markets are mounting in some corners of the industry, but are they warranted? Probably not.
The worry is that years of upstream underinvestment will hit just as global oil demand recovers to pre-Covid levels and non-OPEC supply peaks. There are problems with this line of thinking – on both the supply and demand sides.
For starters, the demand outlook is more uncertain than ever. While I don’t believe 2019 marked the peak for global oil demand, there’s no doubt Covid-19 has dealt a big blow, and that demand may not return to its 2019 rate of roughly 100 million barrels a day until sometime next year.
Oil Market Will Tighten But Shale Should Prevent Supply Crunch
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Winds of change: how Enel and Iberdrola powered up for the energy transition Toggle share menu
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Winds of change: how Enel and Iberdrola powered up for the energy transition Europe s biggest utilities Enel and Iberdrola saw the clean energy transition coming decades ago when others baulked at the high cost of producing energy from the sun and wind and instead stuck with coal and oil.
FILE PHOTO: Iberdrola s power generating wind turbines are seen at dusk in Moranchon wind farm in central Spain December 17, 2012. Picture taken December 17, 2012. REUTERS/Sergio Perez/File Photo 3 related media assets (image or videos) available. Click to see the gallery.
How Enel and Iberdrola powered up way back for the energy transition Once-staid utilities are among green energy majors going into battle with Big Oil 06 April 2021 - 09:31 Stephen Jewkes and Isla Binnie Solar panels in the desert. Picture:REUTERS/FABIAN ANDRES CAMBERO
Milan/Madrid Europe’s biggest utilities Enel and Iberdrola saw the clean energy transition coming decades ago when others baulked at the high cost of producing energy from the sun and wind and instead stuck with coal and oil.
Thanks to early decisions to buy power grids and build renewable plants, the once-staid utilities are now among a handful of global green energy majors going into battle with Big Oil to supply low-carbon power full of confidence.