Crude oil production capacity has waned in many producer nations due to lack of investment amid years of low prices. UAE Energy Minister Suhail al-Mazrouei again emphasized these concerns during an 18 October press conference in Abu Dhabi. “I am concerned that many countries have lost capacity during the pandemic and during the past two years. And the concern is related to lack of investment…we need to talk about bringing [back] investment.”
But there is no magic bullet to boost investment. Capital discipline remains firmly part of the industry lexicon, as does the dreaded phrase “supply chain constraints.” Oil has spent much of this year above $100/B, yet investment has shown little sign of picking up. Asked why this is, Mr Mazrouei says “the lack of stability is what is driving the investors not to invest,” adding that Opec+ is the only organization seeking “to reduce the fluctuations by balancing the market.” (CONTINUED - 896 WORDS)
