Oil Investment Not a Focus for Major Producers: Carlyle's Currie

Bloomberg

Watch Oil Investment Not a Focus for Major Producers: Carlyle's Currie - Bloomberg on Dailymotion

Transcript

00:00Jeff, I remember this iconic interview that you gave me like over 12 months ago.

00:03You said, you know, we're running out of everything and no one's realizing.

00:06And you were talking like copper, lithium and everything, rare earths, that we need to help with the energy transition.

00:12Is there now, is investment back?

00:14No, it's not.

00:15And I think you look at drilling in the U.S., it's off.

00:18Russia clearly hasn't been investing in oil.

00:20They've been fighting a war.

00:22Saudi Arabia is focused on Vision 2030.

00:25So there's 50% of the world's oil production.

00:28They're not focused on massive investment right now.

00:30And then you look at the rest of the world, they're not investing.

00:33By the time you get 26, 27, we haven't invested in refineries, drilling for oil capacity, and I don't want to get going on the other commodities.

00:40But I think when we look at the misallocation of capital, look at a ratio of equities to commodities or any financial market to commodities.

00:48You're just grinding lower and lower.

00:49This is going to reverse.

00:51I'm very confident in that view.

00:53Obviously, the timing, I think we go back to that view.

00:56It worked initially into 22 and early 23.

00:59But why did it stop?

01:01I think one of the reasons to stop is the prices went too high, too quick, created a marginal increase in supply.

01:06Interest rates went up because of the inflationary pressures.

01:09And that slowed down, particularly the property sector in China.

01:13And now we're rebalancing.

01:15That story we talked about in 21 and 20, it's still there.

01:19The question is, what kind of demand growth will expose it?

01:22And maybe we see that this year.

Category

Transcript

Be the first to comment

Recommended