“Not every country in the world is on a full recovery mode yet, but at the moment no hiccup seems able to reverse the bullish momentum ushered in by strong summer demand,” said Norwegian consultancy Rystad Energy.

KEY INSIGHTS

1. Bank of America predicted global oil demand would grow at an “unprecedented pace” over the coming quarters.
2. Despite this rosy picture, however, the backcloth is one of considerable unease for Western International Oil Companies (IOC) as they digest the impact of a series of setbacks on the climate agenda.
3. Perhaps the biggest impact was felt in the US with shakeup of Exxon Mobil board last month.
4. Equally important was Shell’s recent loss in a Dutch court to the Friends of the Earth environmental group.

BOTTOMLINE

If climate was previously low on the agenda of the world’s largest independently quoted oil company, that is not the situation now. The investors, board member and society at large believe that oil company strategy is not aligned with the current sentiment around the energy transition. The short-term jump in demand cannot mask the inevitable challenges of energy transition faced in the long-term.