Dramatic Warning: Finish oil reserves on the planet!
Oil shortage for the foreseeable future is predicted by Goldman Sachs, as businesses can not fully invest in future production.
Major oil companies worldwide are increasingly trying to invest in lower-carbon sectors in the energy sector as they react to the pressure for cleaner energy, both by government policies and by investors.
“In 2020 we will have a clear natural shortage of oil because no one can fully invest in future oil production,” said Michel Della Vincia, head of Natural Resources Research at Goldman Sachs, CNBC.
“The transition to low-carbon emissions will go through higher and not lower oil prices,” said Goldman Sachs analyst. Until the full transition to renewable sources is made, the temporary battle will be given to having a larger share of the gas-based electricity market. Given the enormous cost of gas infrastructure, large state-owned companies are in a better position. “We are talking about the new seven emerging sons who dominate the global oil and gas market, as no one else can finance these big projects,” Della Vinia said.
The “new seven sisters” of oil are considered to be the most important companies from outside the OECD. They are Aramco from Saudi Arabia, Russian Gazprom, Iran’s NIOC, China National Petroleum Corp, Brazil’s Petrobras, Venezuela’s PDVSA, and Petronas of Malaysia.
Initially, the Seven Sisters were 1950’s, which later would be established as BP, Chevron, Shell, Exxon Mobil, and Royal Dutch Shell. Dela Vinia said European oil companies, such as Shell, UK, and Total, are in front of US rivals to make the transition from oil to energy. ”
Oil markets have been weak in recent days, as worries about oversupply and fears of economic slowdown have pushed prices down, CNBC said.