Big oil CEOs warn consumers to brace themselves for years of high energy prices. In recent months oil and gas prices have skyrocketed as the pandemic restrictions have eased.
As a result, the global economy is recovering, and investors have dropped investments in new energy supplies.
Furthermore, while oil and gas industries gained profits in 2021, European consumers witnessed high electricity bills in heating and petrol.
High energy prices led various governments to introduce subsidies to ease consumer pressure.
What do Big Oil CEOs say about high energy prices?
Chief Executive of France’s TotalEnergies told RTL Radio, “I’ve no good news to deliver, oil prices will remain high.”
However, TotalEnergies will give out 100-euros to low-income clients dealing with high energy prices and bills.
On Tuesday, BP CEO Bernard Looney told Reuters, “What we can expect is volatility over the coming months and years.”
Moreover, he said the company gained the highest annual profit in eight years. The yearly profits prompt the government to impose higher taxes on oil and gas companies.
Furthermore, he also said the supplies would tighten this year, which is the highest since 2014.
Tight market and oil profits
While oil and gas prices are rising globally, On Wednesday, Europe’s second-largest pipeline gas supplier, Equinor, reported record quarterly profits.
As the European gas market remains tight, the demand gets stronger.
Furthermore, below-normal storage requires replenishing to meet intense demands, said Chief Executive Equinor Anders Opedal.
He said in a news conference, “We expect a tight gas market going forward and we expect volatility in power price development.”
Energy companies shifting to low-carbon energies
Europe’s significant energy companies shifted their business to low-carbon energy in recent years.
Investors have slowed down investments in gas projects and new oil.
Inadvertently, a shift to low-carbon energy and slow investment somehow contributed to the current supply shortages.
Will oil production increase in 2022?
High energy prices are affecting consumers globally. Significant energy and oil companies are aiming to increase oil production in 2022.
BP is not expected to increase oil production and will remain flat compared to 2021.
However, Equinor plans to increase 2% of its total oil and gas production in 2022.
As high energy prices affect businesses, big oil CEOs warn consumers and increase production. Nevertheless, consumers, businesses, and industries are moving towards renewable energies.
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