It is increasingly clear that this year-and potentially the next five-in the oil and gas industry will be defined by a push and pull between capital markets'reluctance to invest in oil and gas and the dissonance among government,consumer and investor perceptions about the speed with which oil and gas should or can be replaced.Market developments in 2021 make structural undersupply of oil and gas commodities self-evident.In prior times,that would mean high returns and a rush to invest,but these are not prior times.Pressure to decarbonize and the subsequent reaction of capital markets may result in continued structural underinvestment.But 2021 has shown us that the laws of supply and demand haven't changed.When gas demand in Europe and Asia surged,the spread between natural gas at the Henry Hub and LNG delivered into Asia went from $3/MMBtu to $30/MMBtu,according to Refinitiv.
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