This week, oil industry leaders and government officials gather in Houston for a significant energy conference, encouraged by major mergers, stable oil prices, and less pressure to switch to cleaner energy.
The annual CERAWeek conference occurs as demand for oil and gas increases along with solar, wind, and biofuels. Energy markets have adjusted to changes in global flows as customers prefer regional suppliers or accept longer sea-based supply routes.
Despite conflicts in Eastern Europe and the Middle East, global oil prices have stayed relatively stable, ranging between $75 and $85 per barrel, providing ample profits without adversely affecting economic expansion.
The robust performance of stock markets continues to drive substantial deals, further consolidating the dominance of major oil companies.
“A remarkable thing is the (price) stability, given the geopolitical turmoil,” said Daniel Yergin, vice chairman of conference organizer S&P Global and a Pulitzer Prize-winning author on global energy.
“When demand was down and prices were down, it was very easy to see a way towards energy transition, but with Russia/Ukraine (war) and price shocks, energy security is back on the table,” Yergin added.
For the past decade, the fluctuations of US shale have been a consistent focus at the CERAWeek conference. This phenomenon transformed energy markets and elevated the United States to the world’s leading crude producer and prominent exporter.
Also read: Wall Street gives seal of approval to the Big Shale era
This year, acquisitions by Chevron, ConocoPhillips, and Exxon Mobil will consolidate the trio as the primary producers in the leading US shale region.
This consolidation is expected to stabilise a volatile element in global oil production. The investments and techniques of major oil companies may mitigate the extreme boom-and-bust cycles associated with shale production.
