OPEC+ Output Decision and the Challenges of Energy Transition

In this interview given to Aleksandra Georgieva from Le Fonti TV, Dr Carole Nakhle, CEO of Crystol Energy, comments on the oil prices gains seen ahead of the OPEC+ meeting, with Brent oil prices breaking through the $70/bl ceiling.

While oil prices are usually increasing ahead of OPEC+ meeting with the market later correcting itself, the current macroeconomic environment and the rollout of the vaccination programme have also been supporting the oil market. However, the big questions remain whether the prices will be sustainably at that level for the rest of the year as well as the response of the US shale oil. 

Dr Nakhle also discusses the challenges lying ahead for the energy transition. On the historical developments that took place with Shell and Exxon Mobil, she cautions that there might be a real unintended consequence here that might decelerate the energy transition as it can open doors to potential litigation and more court cases.

The energy transition is ongoing, but we should be realistic on what we can expect from oil companies, and especially the private firms. We should also acknowledge the fact that the responsibility lies a lot on what governments do on their regulations and legislations and market signals, including carbon pricing. You need to send the right signals to support the energy transition. We are still a long way to go before we see the transformation of IOCs into green energy companies.