Traders see energy price spikes as transition progresses
Extreme volatility possible as underinvestment in upstream oil and gas creates supply gap, trading chiefs say
Extreme energy price volatility could persist through the next decade or longer as slowing investment in upstream oil and gas leaves a supply gap that renewables and nascent technologies such as hydrogen struggle to fill, senior commodity traders say. “This whole concept of the energy transition is not fully understood by the public yet,” Torbjorn Tornqvist, CEO of trading firm Gunvor Group, told the Energy Intelligence Forum 2021. “The reality is that there is a perception that we can do this and that energy prices will be cheaper. I think that is an illusion.” Tornqvist says alternative technologies are not yet sufficiently deployed to provide enough energy to replace hydrocarbons. Time an
Also in this section
23 April 2024
Europe must unlock cross-border CO₂ trade if it wants to build a viable CCS sector for the long term
16 April 2024
US and European oil majors snap up smaller players and look to accelerate development in a region deemed to possess all the key elements for successful CCUS deployment
15 April 2024
Demand for credits seen rising 20% this year despite issues around integrity and standardisation
11 April 2024
Volatile allowance prices and small size of voluntary market undermine ability to drive investment, says Oxford Institute for Energy Studies