E&P investment becoming mission impossible
Oil price volatility and the high cost of hedging mean putting money into exploration and production is unaffordable for all but the largest players
The Opec+ members and central bankers from the EU, the US and the UK all announced key decisions in June 2023. Their actions vividly demonstrated why investors across the world will put money into building plants to produce everything from computer chips to batteries but will not back proposals to drill for oil. The central bankers, as usual, telegraphed their actions in advance in a concerted effort to warn investors and/or confirm market expectations. The policies adopted since the appointment of Prince Abdulaziz bin Salman as oil minister have made it more challenging for most companies to invest safely in oil exploration. These policies clearly result from Crown Prince Mohammed bin Salma
![](/images/white-fade.png)
Also in this section
26 July 2024
Oil majors play it safe amid unfavourable terms in latest oil and gas licensing bid rounds allowing Chinese low-ball moves
25 July 2024
Despite huge efforts by India’s government to accelerate crude production, India’s dependency shows no sign of easing
24 July 2024
Diesel and jet fuel supplies face a timebomb in just four years, and even gasoline may not be immune
23 July 2024
Rosneft’s Arctic megaproject is happening despite sanctions, a lack of foreign investment and OPEC+ restrictions. But it will take a long time for its colossal potential to be realised