Producers of crude oil and natural gas will invest more in their business next year amid a stumbling transition away from hydrocarbons. The development may come as a surprise in the context of ever more transition commitments on the part of governments, but it simply proves one thing while there is demand, there will be supply.
” Consolidation may be the new way of expanding asset bases because direct spending on exploration specifically remains lower than it was a decade ago, and that spells potential trouble for reserve replacement down the line as the transition continues to falter, strengthening the long-term outlook for hydrocarbons, including coal. China’s coal imports just hit an all-time high in September and China is the country with the most wind and solar capacity, plus the biggest EV market in the world.