Saudi Arabia’s energy minister Prince Abdulaziz bin Salman was speaking at the Robin Hood Investors Conference (i.e. an audience of hedge funds)
- warned of a risk of a supercycle due to “lack of investing”
The background to his investment comment is that some oil producers and exploration firms have scaled back drilling budgets to conserve cash and avoid a new supply glut. Also, hopes for green energy are playing a role in this.
- “I think it’s my job, and others’ jobs, to make sure this super-cycle doesn’t happen”
Hmmm. He may not be too unhappy with higher oil prices but I guess the argument is higher prices will attract new supply (this is it usually how it works … looking at you US shale).