NRGO - Demand Is Recovering But Oil Investments Are Not

• As oil demand is recovering sooner than expected, and by next year is likely to reach pre-pandemic levels at 100 million barrels per day, the question remains as to whether upstream investments (exploration & production) will gradually reflect the rebound in oil prices.
• Some international oil companies are still keeping their spending restrained after the rebound in oil prices over the past year, especially in the US, where activity has not yet stepped up, which is clearly reflected in slowing US oil production growth.
• Despite the increase in net income in 2021, IOCs announced capex cuts. This huge upstream capex cut took place simultaneously with increased pressure by environmentalists on banks to stop financing fossil fuel companies.

For further details see: