What does the boom in oil and gas projects mean for energy prices?

A year ago, with the outbreak of war in Ukraine and the disruption of energy supplies, Goldman Sachs Research predicted that the oil and gas industry would emerge from a prolonged period of underinvestment and embrace significant new projects. Now, the investment boom has arrived. The industry has 70 major projects under development worldwide, a 25% increase from 2020, according to Top Projects, GS Research’s 20th annual analysis of the energy sector. We spoke with Michele Della Vigna, head of Goldman Sachs natural resources research in EMEA, about rising investment, and what that means for OPEC and energy prices.

The surge in investment that you predicted a year ago is here. Will it continue?

Last year was the turning point — after seven years straight of underinvestment, it was the first up year. I think this year provides the confidence and the confirmation that this trend is definitely in place. We have projected out for the next five years close to 10% per annum growth in capital expenditures.

Serinus Energy plc (LON:SENX) is an international oil company with operations in Romania and Tunisia. The focus of the Company is to enhance shareholder value by growing oil and gas production through the efficient allocation of capital.

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