In my previous posting “Blind Spots” I referred to the 2014 Oil Council Africa conference and how certain questions had sparked in me a wider reflection on the state of the Energy industry. This year at the Oil and Gas Council (more on that timely rebranding in a subsequent post…) in Paris some of us were really surprised by the almost bullish atmosphere of the O&G companies. The oil price rally from the “depths” of $43 in the spring, to the then almost $65, was being seen as a strong indication that ‘the worst is over’.
The two main sessions on financing were at the very end of the three day conference – which allowed the mainstream presentations and panels (corporate and NOC/Governmental) to proceed with ‘business as usual’. Seen from the lens of the financing community this could be better characterised as sleepwalking. Many great projects, top notch geology and technical stories, as well as mediocre ones – and no consideration (I exaggerate for effect) of the financing of these project or of the likely returns on capital that these projects might, or indeed should, create.Continue reading “Investor Strike in Oil and Gas?”