ESG Shock Arrives: Oil Market Needs Half A Trillion Dollar Injection To Avoid Supply Collapse, Price Surge | WHAT REALLY HAPPENED X-Frame-Options: SAMEORIGIN

ESG Shock Arrives: Oil Market Needs Half A Trillion Dollar Injection To Avoid Supply Collapse, Price Surge

Back in June, when we asked if "ESG will trigger energy hyperinflation" we observed that the growing pressure from virtue-signaling investor groups on oil companies to reduce oil and gas exploration and adapt their business models to some ridiculously unprofitable "green" ideal has increased significantly in the past year. This, as DB showed, was reflected most clearly in crude rig counts that had lagged the recovery in oil prices and stand at 1/3rd of the 2014 peak.

We quoted DB strategist Francis Yared who said that "ESG is a negative supply shock that internalizes the climate cost of the production of goods and services." This negative supply shock will be inflationary until technological progress absorbs these costs. That could take years.

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