Quote:
Originally Posted by burn_this_city
After a near death experience I think most companies are just happy printing money for the time being. With so much pressure to decarbonize I don't think anyone will throw down $10B on long cycle growth projects. Every project going forward in Alberta will likely have carbon capture from day 1. If demand doesn't peak in next 5 years there will be a struggle to cover the growth.
High prices going forward might be a feature not a bug of the energy transition. Industry will need the capital to sort out the technology to capture the emissions and higher prices will force consumers off of fossil fuels.
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The absence of capital has been a result in North American markets of a refusal to support unadulterated non-sensical / wasteful growth as was the norm over the last few years.
But if companies seek to invest in new technologies they’ll get external capital delivered to them, they won’t only have to rely on higher oil and gas prices (which always go up and down over long term trends anyway). The days of 4-5 guys popping off to just fire up a new junior oil company to then sell for a few million in a few years are over though, unless they have some novel idea for new technologies to test out in things like hydrogen, CCS or renewable tech. But that might be tough to do.