Warn..

 

Saudi Arabia’s Oil Minister Abdulaziz bin Salman is right to warn of a potential energy crisis resulting from falling investment in fossil fuels. 

The prince warned that worldwide oil production could fall by 30 million barrels a day by the end of the decade because there is not enough being spent on the exploration for and development of new resources. That implies production of less than 70 million barrels a day. Less oil will lead to much higher prices.

But his warning isn’t entirely self-serving. Saudi Arabia’s oil riches aren’t open to foreign investors, so his call for more spending is actually aimed at encouraging competition with the kingdom.

This serves as a recognition of two things: First, the world’s need for affordable oil isn’t going to disappear anytime soon; and second, despite its oil reserves, Saudi Arabia can’t supply it all by itself.

Even the International Energy Agency, which has been incorrectly cited as calling for an end to new oil developments, sees oil demand remaining near pre-pandemic levels by 2030.  Just a "Energy" thought.