Originally Posted by
Trip7
Agreed there is plenty of Oil. However to maintain or grow production requires capital investment which has been rather limited over the past view years due to ESG type rhetoric depressing Energy equities there companies did not reinvest back into the business due to poor return on capital. This puts pressure on supply as it will take a couple years for every dollar of capital investment today to materially increase supply.
It’s been greed plain and simple. Companies did not want to invest in their own infrastructure, in this case refineries. They put off heavy maintenance, not a new one built in decades. The big manufacturers are even off loading their refineries to other companies to get them off their books.
All of this has been happening long before ESG investing came along.