Citi: No energy “supercycle” – MacroBusiness
Via an unhappy AFR:
“I see [the current price crisis] as a temporary phenomenon,” Mr Morse told The Australian Financial Review from his New York base, from where he will speak by videolink to the Citi Australia Investment Conference on Thursday.
“We think that at current prices, oil and gas… are super-abundant even with the restrictions put in place around the world to exploit old-fashioned, dirty hydrocarbons.”
The rapid economic recovery from the COVID-19 pandemic will also be temporary, with the result that the growth in oil demand slows, while the commodity-intensity of world GDP will also continue to slide, Mr Morse said. At the same time the cost of finding and developing oil has fallen, adding up to Citigroup’s view – which is not the consensus view – that supply will easily meet growth in usage in oil and gas over the next few years.
“Not the consensus…