Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Oil CEOs raise alarm over market's readiness to drop fossil fuels

CommoditiesDec 07, 2021 02:21PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
2/2 © Reuters. A view shows the registration desk of the World Petroleum Congress, in Houston, Texas, U.S. December 6, 2021. REUTERS/Sabrina Valle 2/2

By Marianna Parraga and Sabrina Valle

HOUSTON (Reuters) - A coming transition from oil and gas to renewables will be "messy" for many years and lead to sharp energy price volatility as demand and supply clash, top energy executives said on Tuesday.

The World Petroleum Congress, a gathering to discuss the future of oil and gas and explore new technologies, emerged as a counterpoint to last month's COP26 climate change conference. Where COP26 delegates warned of a climate catastrophe, oil executives predicted uncertain future for energy markets.

Government proposals to halt investments in new oil, gas and coal production "didn't do anything about the demand side or inflation," ConocoPhillips (NYSE:COP) Chief Executive Ryan Lance told a panel discussion.

That pressure on energy producers and new questions about the Organization of the Petroleum Exporting Countries' spare production capacity are "setting up for a messy transition," said Lance.

Subhash Kumar, managing director of India's state-run explorer Oil and Natural Gas Corp, echoed the warning that consumers and markets are not prepared to make the transition to clean fuels as quickly as some want.

"The transition is going to be unsteady and could be disrupted as well," Kumar said. The transition is likely to leave new energy production projects "starved of capex" and unlikely to proceed.

Consumers in Asia and Europe this year have faced shortages of natural gas, coal and power due to production declines that pushed prices to multi-year highs. In the United States, the Biden administration has criticized prices of gasoline, blaming oil and gas companies for putting profits over the economy.

"This is a massive, massive challenge," said Mark Little, CEO of Canada's second-biggest oil producer Suncor Energy (NYSE:SU) Inc. "Everyone is trying to solve it on the supply side and (though) the demonization of the producers," he said.

The tension between investing in oil and gas, carbon reduction technologies and responding to investors demanding higher returns and consumers wanted steady supply will be a continuing issue for major oil firms, several executives said.

Families are being hurt by energy bills as high prices affect households during a strong global push to move away from fossil fuels, Spain's Repsol (OTC:REPYY) CEO Josu Jon Imaz said.

A reliable supply of oil and natural gas must be guaranteed by energy companies as demand will continue in the coming years, he said.

“To have an orderly transition, oil and gas are part of the solution, not the problem,” said John Hess, CEO of Hess Corp (NYSE:HES).

Oil CEOs raise alarm over market's readiness to drop fossil fuels
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (2)
Alan Rice
Alan Rice Dec 07, 2021 8:05PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I'll bet the transition is less "messy" than say Valdez Harbor, The Louisiana Cpastline, Huntington Beach, and my Chevy Cruze's PLASTIC filter cover.
Angus Malarkey
Angus Malarkey Dec 07, 2021 1:59AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
First paragraph-..."and the economic opportunity it presents." It's all about the money!
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email