Consumers need to prepare for a lasting energy nightmare, as high energy prices are expected to last for years, warn the leaders of leading oil and gas companies.
That fact must be taken into account. ”
Oil and gas prices have soared in recent months as a result of the rapid recovery of the global economy following the normalization of the effects of the coronavirus pandemic, as well as the reduction of investment in new energy projects.
Thus, while oil and gas companies announced big profits for 2021, consumers, especially in Europe, were faced with sharp increases in gasoline, heating and electricity bills, which in turn led many governments to adopt support measures. , with account subsidies, in order to alleviate the pressures on disposable household income.
“I have no good news, oil prices will remain high,” Patrick Pouyanne, chief executive of French TotalEnergies, told RTL Radio, adding that TotalEnergies would distribute a € 100 ($ 114.20) voucher. to help some of the low-income customers cope with the high energy bills.
It is noted that especially in Europe gas prices have more than tripled in the last year, after the historic highs recorded at the end of last year, amid low seasonal reserves.
“What we can expect is volatility in the coming months and years,” BP chief executive Bernard Looney told Reuters on Tuesday, following the announcement by the British company of the highest annual profit in eight years. , increasing calls to the government to increase taxes on oil and gas companies in order to help citizens cope with energy bills.
In fact, the CEO of BP warned of further “tightening” of the oil market, a fact that could push prices even higher, which remain above $ 90 a barrel, the highest level since 2014.
Equinor, Europe’s second-largest gas supplier after Russia’s Gazprom, also posted record quarterly earnings, with CEO Anders Opedal saying it expects the European gas market to remain “tight”, with demand remaining strong this year as well.
“We expect a tight gas market in the future and consequently volatility in energy prices,” Opedal told a news conference.
Meanwhile, the current supply shortages are partly due to the fact that Europe’s leading energy companies plan to switch from fossil fuels to low-carbon and renewable energy sources, limiting their investment in new projects. oil and gas in recent years.
Source: Capital
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