Energy Expert Turns Attention to Upcoming COP26
(The views and opinions expressed in this article are those of the attributed sources and do not necessarily reflect the position of Rigzone or the author)
In this week’s preview of what to watch in oil and gas markets, Rigzone’s regular energy prognosticators focus on the upcoming UN Climate Change Conference and energy inventory deficits in the face of colder temperatures. Read on below to find out the specifics.
Jon Donnel, Managing Director, B. Riley Advisory Services: The UN Climate Change Conference (COP26) starts at the end of the month as aims of reaching goals laid out in the Paris Agreement are being met with a world that has not decreased overall hydrocarbon demand as economies are emerging from Covid lockdowns. There is little reason to suppose western countries will be inclined to back down from decarbonization plans but the fact that crude, natural gas, coal and electricity prices are soaring, China and Russia are not expected to attend the event and multiple countries are calling on OPEC+ to boost current production sets up for a rather stark contrast between future ambitions and current realities. It will be interesting to see how much, if any, compromise is proposed for incremental decarbonization steps, such as natural gas versus coal electricity generation or additional infrastructure spending on pipelines, or whether delegates stick to aspirational, long-term targets.
Tom Seng, Director – School of Energy Economics, Policy and Commerce, University of Tulsa’s Collins College of Business: Our general energy inventory deficits will be tested at the first sign of colder temperatures. Obviously, each day that we approach the winter season increases that possibility.
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