Letter from Singapore: Beware oil investment’s death rattle

High prices are no longer a guarantee for increased investment in oil projects despite the warnings of an energy crunch

Some energy professionals have been writing the obituary for oil investment for several years. A disdain for financing hydrocarbons across the banking world, punitive measures on energy companies that dare to make a profit, a cult-like pursuit of ESG and fears of stranded assets amid apocalyptic warnings of a collapse in oil demand have left the industry on life support. But what does not kill you only makes you stronger, right? The crux of the matter is the relationship between oil prices and investment. The two have understandably had a close correlation. Higher prices lead to greater investment, which then leads to a glut in projects, a crash in the price, a cull in investment and—once ag