UN Blames Big Oil For His Own Policies

By Paul Homewood

They want to get rid of gas and oil, but demand a share of the profits in the meantime!

https://www.aol.com/u-n-chief-urges-tax-162849521-233442998.html?guccounter=1

To a large extent, the cause of high oil prices lies at the door of the UN and the rest of the climate establishment, who have been doing their utmost to discourage investment in new oil wells. Worse still, their policies are likely to make matters much worse in the medium term.

A look at last years IEA report on oil shows just how far CAPEX has fallen in the past decade:

The report was published in March 2021, so may be out of date. However a recent Fitch analysis also shows that CAPEX last year was well down on years prior to 2020:

https://www.fitchsolutions.com/oil-gas/2022-global-capital-expenditure-rising-elevated-oil-prices-01-02-2022?fSWebArticleValidation=true&mkt_tok=NzMyLUNLSC03NjcAAAGGE0HIbJXNwRWbhIhrmhq8Rc1XCA3F7eUqoBAu8I57ncgKTIEyVJiJr88p1z2S2MH2JzOlIJLMdvxOyl96gUWvvS3S0MP8y54aDP-gvCnyDZkVfqv89A

CAPEX declined sharply in 2015/16 because of the slump in oil prices. And obviously the lockdowns of 2020 knocked CAPEX for six. To some extent the slow recovery last year was still pandemic-related.

However, there has been an underlying decline in investment for the last few years, as oil companies have been cajoled through a mixture of political, judicial and activist shareholder pressure to cut back output, and switch investment to renewable energy:

One result of this has been the massive write downs made by oil companies and job losses:

As a consequence, the share of global investment made by Big Oil has fallen sharply since 2016, whilst the NOCs (National Oil Companies) have taken up the slack:

This is all, of course, predicated on falling demand for oil, as we supposedly switch to EVs and so on. But the IEA still forecast that demand will carry on rising for the next few years at least:

And the IEA themselves still project that global oil demand will carry on rising well into the 2030s, and still be higher than now in 2050, based on “prevailing policy settings”: