The data book and attendant data file provides a reference guide to the valuation metrics for equities in the oil & gas sector, building on the data issued in the Equity Databook.
As has been suggested by the data from previous quarters, the oil & gas sector's valuation is having less and less to do with the underlying fundamentals, and more to do with unconnected metrics.
Nevertheless, the growing supply side weakness is at risk of driving prices further upwards in the coming quarters, and such has been the under investment in the last 2 years, albeit compounded by covid, that the "higher for longer" scenario is likely to take a firmer hold.
This is the start of what is going to be a supercycle, as "forward supply attrition" starts to significantly impact energy availability.
Whilst politicians scramble for other people to blame, this is fully and squarely at their door, as the reckless pursuit of "net zero" has ignored the reality of our current energy mix and that the transition should be managed from the consumer demand side, not the supply side.
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