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Losses in the oil and gas industry come earlier than expected

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Summary

The disruptive developments in the energy sector have had a greater impact on the oil and gas industry than originally calculated. The energy turnaround is challenging the business models of companies throughout the sector and shows how gridlocked the industry is.

Writing off reserves in the oil and gas industry is like a seismograph for tectonic developments in the energy sector and a prime example of how quickly and decisively the omens for the entire industry can change if investors are serious.

What is it about The write-offs in the fossil energy business are coming faster than previously estimated. More and more oil and gas producers have recognized the effects of the energy turnaround in their core business and are setting climate targets, lowering their price forecasts and writing off assets.

Investments in this sector are declining and the business models of oil and gas producers have been shaken to their foundations. The energy turn towards a CO2-neutral future threatens the existence of many companies that rely on fossil fuels.

Why is that important Writing off reserves in the oil and gas industry is like a seismograph for tectonic developments in the energy sector and a prime example of how quickly and decisively the omens for the entire industry can change if investors are serious.

This is particularly evident in the case of US oil and gas companies, which, according to a report, are anything but prepared for the existential challenges of the energy revolution.

The Globalance View We have been pointing out the so-called carbon bubble for years and excluded the relevant sectors early on. Thanks to our consistent focus on megatrends and future-oriented investments, we ensure that we are also playing the right cards in other sectors and are spared unpleasant financial losses.

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