Letter from London: Beware false prophets

The oil and gas sector’s renewed upstream activity stands in marked contrast to just a few years ago, highlighting that the market does indeed cycle

The oil and gas upstream has changed significantly in the last few years, shifting gears from the pandemic-era doldrums to the current period, with re-energised majors once more focused on exploration and investment. The trends of the past three years demonstrate how all commodity markets experience cycles of investment and divestment and of optimism and pessimism despite false claims that it is radically different this time. When your correspondent started working for Petroleum Economist back in 2021, the upstream environment was radically different. The pandemic caused a global slump in oil and products demand, and with it a steep drop-off in upstream investment across the board. The exten