Big Oil’s Big Problem – Hard To Find A Favorable Scenario

C-MACC Weekly “CRETER” (Climate etc.)

Big Oil’s Big Problem – Hard To Find A Favorable Scenario

• Big oil is in trouble, and it is a challenge to find a compelling reason to invest in this market currently – we view industry consolidation as inevitable. 
• IEA sees fossil fuel spend rising in 2021 – we agree, but see cuts before 2025.   
• We think some of the current hype surrounding recycling is price-driven. In our view, some announced growth plans will be uneconomic when prices normalize.
• Other recycling initiatives continue – many are focused on needed technology.
• Domestic inflation and infrastructure are risks to US offshore wind ambitions.

See PDF below for all charts