Top energy executives and officials attend Houston meeting as the global oil output drops
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Some of the leading energy executives and officials globally will meet in Houston amid concerns about the global oil supply in the coming week. The Russian invasion of Ukraine has put pressure on the global oil supply levels, with long-term energy security being on the mind of many governments globally.
Energy executives meet in Houston to address oil supply concerns
The oil company ministers and chiefs will make their case for investing in energy sectors such as renewables and fossil fuels to meet the growing demand. The meeting has attracted 7000 people attending the week-long event to discuss clean energy, fossil fuel, and advanced energy storage.
The Russia-Ukraine war has triggered fuel prices and crude oil rallies, leading to record profits. The US is accusing large oil companies of making profits, and other governments, such as the UK, are looking to impose taxes on energy companies.
The meeting in Houston will likely attract arguments. Executives in the US and other Western countries want oil companies to increase their production. In contrast, these companies say they are responsible to their shareholders to deliver the best returns to retain their investments in the industry.
This year’s event will also address the supply and demand concerns between the Organization of the Petroleum Exporting Countries, Europe, and the United States. Experts also believe that this year’s event will address the strategies companies have used over the past year.
The discussion will also include car companies seeking to address the energy transition to electric vehicles. The CEO of the Hertz car rental company, Stephen Scherr, will speak during the event. His appearance comes when the company plans to purchase tens of thousands of electric vehicles from Tesla, General Motors, and Polestar.
Pat Jelinek, the oil and gas leader for EY Americas, said, “The industry is on board with the energy transition, ESG, and decarbonization, but there is a recognition that we are going to need hydrocarbons from an energy reliability and security standpoint.”
Few OPEC participants in Houston meeting
The speakers in this meeting include the oil ministers from Africa and Asia. However, there will be officials from Russia, which has sent its ministers to these meetings in the past. Oil ministers from Iraq, Kuwait, Saudi Arabia, and the United Arab Emirates will also attend.
The oil output from the OPEC members was reduced to 2 million barrels daily in November last year, resulting in a bitter exchange with the US government. Besides OPEC, top shale executives will also not dominate the meeting.
US shale executives were also in conflict with the Biden administration about the oil drilling restrictions and a drop in investment, which affected the overall output. The lack of attendance from both OPEC and Shale comes as tensions between the two organizations drop significantly. Their lack of attendance at this meeting comes amid concerns of a dropping supply despite the demand remaining notably high.
