October 4, 2023[Oil & Gas]- Prior to the start of the ADIPEC conference, India voiced its growing concerns regarding the soaring crude oil prices that are steadily approaching the $100 per barrel threshold. Pankaj Jain, the secretary at the Ministry of Petroleum and Natural Gas, underscored the fact that India maintains an ongoing and proactive dialogue with all major oil-producing nations.
In these dialogues, India consistently emphasizes the pressing issue of excessively high crude oil prices.
In contrast, the leaders of oil companies attending the ADIPEC conference in Abu Dhabi emphasized the extent of their economy’s dependence on fossil fuels. They argued that the recent surge in oil prices was primarily driven by a significant drop in investments within the oil and gas sector over the past few years. This dependence on fossil fuels has made them particularly vulnerable to the fluctuations in oil prices.
Amidst these discussions, TotalEnergies, a major player in the energy sector, reaffirmed its commitment to its oil and gas projects. They projected an annual growth rate of two to three percent in these traditional sectors. Concurrently, TotalEnergies pledged a substantial investment of $40 billion in energy transition and decarbonization projects, indicating a proactive approach towards addressing environmental concerns. Additionally, Shell announced recently a financial package of $10 billion to $15 billion over the next three years, with a specific focus on developing low-carbon solutions, marking a significant step toward sustainability.
However, despite the physical market tightness, oil prices experienced a decline for the fourth consecutive day. West Texas Intermediate traded at approximately $88 per barrel, reflecting a 2.2% decrease from the previous session. This recent downturn has resulted in a nearly 6% decrease in oil prices since the close of the market last Wednesday, driven by growing apprehensions about the global economic outlook and its impact on oil demand.
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