Meanwhile, the CEO of the state oil giant Saudi Aramco, Amin Nasser, said on September 20 that caps on energy bills and taxing energy companies are short-term solutions, which may not actually help solve the global energy crisis.
Ukraine not the sole reason for energy crisis
Additionally, the Saudi CEO claimed that the war in Ukraine is not the only reason why we are facing an energy crisis. Namely, according to him, years of underinvestment in the hydrocarbon sector and a lack of ready alternatives are the main culprits.
Too late with investments
Despite the strong global headwinds, the demand for oil seems to be booming, and with the healthy demand and the production under-capacity, as Nasser claims, is leading to higher energy prices. European strategy of shaving off excess earnings from energy companies and redistributing those profits to ease the burden on consumers could actually offer some short-term relief, but capacity expansion seems to be the surest way to ease out of the energy crisis.
Climate goals
Whether investment into additional production capabilities of carbon energy companies will offer a convenient excuse for governments to neglect their climate goals remains to be seen. Green bonds, and overall green investments, are kicking into a higher gear, but it’s still unclear if it’s all ‘too little, too late’ as Aramco’s CEO claims. Buy stocks now with Interactive Brokers – the most advanced investment platform Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
