• 2 minutes California to ban gasoline for lawn mowers, chain saws, leaf blowers, off road equipment, etc.
  • 6 minutes China and India are both needing more coal and prices are now extremely high. They need maximum fossil fuel.
  • 11 minutes Europeans and Americans are beginning to see the results of depending on renewables.
  • 2 hours Monday 9/13 - "High Natural Gas Prices Today Will Send U.S. Production Soaring Next Year" by Irina Slav
  • 21 mins GREEN NEW DEAL = BLIZZARD OF LIES
  • 12 hours "A Very Predictable Global Energy Crisis" by Irina Slav --- MUST READ
  • 4 hours Two Good and Plausible Ideas about Saving Water and Redirecting it to Where it is Needed.
  • 2 days Did China cherry-pick the factors that affected the economic slow-down?
  • 16 hours "Here is The Hidden $150 Trillion Agenda Behind The "Crusade" Against Climate Change" - Zero Hedge re: Bank of America REPORT
  • 3 hours Putin and Xi have decided not to attend the Climate Summit in Glasgow
  • 19 hours Are you aware of Oil Price short videos on our energy topics?
  • 24 hours Is China Rising or Falling? Has it Enraged the World and Lost its Way? How is their Economy Doing?
  • 1 day NordStream2
  • 2 hours The Climate Scare Stories Began With Far Left Ideology Per GreenPeace Co-Founder
  • 411 days Class Act: Bet You've Never Seen A President Do This.
Irina Slav

Irina Slav

Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.

More Info

Premium Content

Goldman Sachs Sees An Oil Supply Crunch Looming

The oil market could tip into a shortage in the 2020s because “nobody is allowed to fully invest in future oil production,” Goldman Sachs’ head of EMEA natural resources research, Michele Della Vigna, told CNBC.

Della Vigna said the transition to a lower carbon environment will take place amid higher oil prices rather than lower ones, which makes perfect sense since higher oil prices dampen demand, encouraging the switch to cleaner fuels, including natural gas.

Yet the so-called bridge fuel won’t replace oil so much, the Goldman Sachs researcher said, adding that gas will mainly replace coal in power generation. Gas is the cheapest and most effective way to cut emissions from coal consumption, Della Vigna said, but it will require massive investments in pipelines and LNG terminals. These investments, the analyst went on to add, will come from a handful of companies—the “new Seven Sisters”—as there are not a lot of companies with the resources to fund such large-scale projects. Related: OPEC Fears Another Downturn In Oil

So, oil is not going anywhere for a while yet but more investment is needed to maintain production at levels that would ensure reasonable prices, seems to be the message of Goldman Sachs’ EMEA energy research head. This is in tune with OPEC’s warnings that the oil industry needs to step up its exploration efforts as global oil demand is set to continue rising, albeit more slowly than previously forecast.

Over the short term, however, neither Goldman Sachs nor OPEC are too bullish. Last month, the bank’s head of commodities research, Jeffrey Currie, told S&P Global Platts Crude oil was unlikely to reach US$100 a barrel as various analysts have warned. Indeed, the latest price movements support this view: WTI just entered a bear market and Brent slipped below US$70 a barrel this week.

OPEC, meanwhile, has revised down its short-term global demand outlook for three months in a row, the latest forecast seeing growth at 1.54 million bpd this year, down by 80,000 bpd from the estimate in the September Monthly Oil Market Report.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News