He addressed three major misconceptions: weak oil demand because of recession fears and the rise of electrical autos, issues over surging US shale manufacturing, and instability associated to OPEC+ market methods.
Nuttall famous, “Predictions from the Worldwide Vitality Company recommend that oil and hydrocarbon demand will peak later this decade. These components distort perceptions of the truthful worth of oil and power corporations.”
Highlighting the financial components driving oil demand, Nuttall emphasised the influence of inhabitants development and rising dwelling requirements in non-OECD international locations. “The true drivers going ahead are inhabitants development in non-OECD international locations mixed with rising dwelling requirements,” he mentioned.
He additionally identified that the power transition will take longer than anticipated, with conventional power sources like pure fuel enjoying a vital function. “Nearly all of the world is concentrated on power accessibility and power affordability, not decarbonization,” Nuttall emphasised.
Nuttall mentioned the sturdy efficiency of Canadian power corporations, which, regardless of buying and selling at depressed valuations, have deep inventories and robust steadiness sheets.
