The current overhang is bad – by any measuring stick. But let’s be realistic. Even if the word takes a kick from COVID, been if some of the saved up mess from 2008 lingers, even if China faces a severe crunch, people will need reliable energy and will need it all the time. Bad times mean no more money for things that don’t deliver which means that’s the death of most renewables and EV’s. It’s back to the one thing we know works – oil and gas. I can see much higher prices in the future.
Before the pandemic and the oil and gas demand slump, Rystad had forecast a $2 billion year-on-year decrease in E&P project sanctioning.