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As a outcome, oil and gas companies are feeling intense pressure to respond in terms of capital allocation decisions and method out of worry of damage to both their corporate reputation and bottom lines. On the flipside, of course, is Russia’s invasion of Ukraine, and the risks that it will lead to a further curtailment of Russian oil exports – such as more drastic measures from Europe. Outrage more than the invasion has led to some self-sanctioning by western purchasers the US has currently initiated a ban on Russian oil, and the European Union is actively contemplating one particular. The IEA currently predicts as considerably as 3MM BPD of Russian exports could be taken off the market. On to the demand side, greater energy rates from the Ukraine crisis could have a knock-on impact on international financial development. Kate Hardin is executive director of the Deloitte Research Center for Power & Industrials.
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