A new OPEC deal designed to return the global oil industry to profitability will fail to prevent its ongoing march toward trillion dollar debt defaults, according to a new report published by a Washington group of senior global banking executives.
But the report also warns that the rise of renewable energy and climate policy agreements will rapidly make oil obsolete, whatever OPEC does in efforts to prolong its market share.
The six-month supply deal brokered with non-OPEC members, including Russia, could slash global oil stockpiles by 139 million barrels. The move is a transparent effort to kick prices back up in a weakening oil market where low prices have led industry profits to haemorrhage. [...]
“The current agreement is only for 6 months and decisions about investment in oil and gas are based on a 20 to 30 year view of future demand,” Bradshaw told me. “On that time scale, none of the uncertainties are addressed by the current agreement and oil exporting states need a strategy beyond achieving a short-term agreement on production—they need to start preparing for a world after fossil fuels.”
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