{"id":58229,"date":"2021-06-11T06:53:40","date_gmt":"2021-06-11T11:53:40","guid":{"rendered":"https:\/\/olduvai.ca\/?p=58229"},"modified":"2021-06-11T06:53:40","modified_gmt":"2021-06-11T11:53:40","slug":"saudi-arabia-and-russia-warn-of-major-oil-supply-crunch","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=58229","title":{"rendered":"Saudi Arabia And Russia Warn Of Major Oil Supply Crunch"},"content":{"rendered":"

Saudi Arabia And Russia Warn Of Major Oil Supply Crunch<\/a><\/h3>\n
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The debate about emissions reduction and the path forward for oil companies moved to a whole new level since the International Energy Agency (IEA) dropped last month the\u00a0bombshell report<\/a>\u00a0suggesting no new investment in oil and gas would be needed if the world is to reach net-zero emissions by 2050.<\/p>\n

Environmentalists and activist shareholders intensified pressure on large public oil firms to align their businesses with a net-zero scenario, while some of the international majors acknowledged they have a part to play in the energy transition.<\/p>\n

But the leaders of the OPEC+ group, Saudi Arabia and Russia, will continue to invest in oil and gas because, they say, the world will still need those resources for decades, despite the growing push against fossil fuels and investment in new supply.<\/p>\n

Chronic underinvestment in oil and gas supply while operational oilfields mature would lead to a supply crunch and\u00a0a spike in oil prices<\/a>\u00a0down the road, analysts and Big Oil top executives such as TotalEnergies\u2019 Patrick Pouyann\u00e9 say.<\/p>\n

While international oil majors were somewhat more contained in their views on the IEA report\u2014those that commented on it anyway\u2014Saudi Arabia and Russia didn\u2019t beat around the bush and said outright that the suggestion of no new oil and gas investments ever is \u201cunrealistic,\u201d \u201csimplistic,\u201d and taken out of a \u201cLa La Land\u201d script.<\/p>\n

BP\u2019s chief executive Bernard Looney\u00a0wrote<\/a>\u00a0that forecasts of much lower investments in oil and gas were \u201cin many ways consistent with our approach – to reduce our oil and gas production by 40% in the next decade.\u201d Eni\u2019s CEO Claudio Descalzi commented on Looney\u2019s post that \u201cWe are now at a historic turning point, where each of us needs to play an active role.\u201d<\/p>\n