Oil companies cautious about drilling as energy transition looms

Lack of drilling investment could exacerbate energy shortages in poor countries and fuel inflation, company executives warned at the World Petroleum Congress in Calgary this week. — Reuters

GOVERNMENT policies to fight climate change are discouraging oil companies from investing heavily in new production even as they turn in record profits – a dynamic that could spell tight supply and high prices as clean energy alternatives seek to fill the void.

Crude oil prices have surged above US$90 a barrel and some analysts predict they will nudge above US$100 by year’s end.