Gas and price increases, Descalzi: “From a reduction in investments, an increase in prices”

Increases of more than 500% of the price of gas in Europe in the last year, “the reason is that upstream investments, those upstream of the energy supply chain for the creation of new production capacity in the fields, have had two phases of strong reduction. The first was caused by a very significant oversupply in 2014. It then went from $ 850 billion in annual global investment to $ 350 billion or $ 400 billion annually. Investments were subsequently kept low, for fear of a reoccurrence of an excess of offer. Then there was Covid, which lowered them further “. Claudio Descalzi, Eni’s CEO, says this in an interview with ‘Corriere della Sera’. Therefore, he explains, “the supply is no longer in line with a rebounding demand. The easing of Covid has represented a spring that is now expanding and those who must ensure energy are unable to keep production at the necessary pace. , due to the decline in investments in recent years “.” The litmus test that these are not simply increases linked to passing circumstances – he explains in fact – is that the increase in prices is not timely, it does not occur in a single region of the world. It is not only in the North Sea or in Europe. There is an even greater increase in Asia. There are tremendous increases in Argentina, Brazil, the United States. The United States has a lot of gas, yet even there the price is more than doubled. So it can’t just be that there has been no wind in the North Sea recently and, instead of using 15% or 18% wind energy, for now it’s using 7%. It’s not just that. ” . As for Russia, which would limit supplies, he adds: “Maybe it can affect Europe, but certainly not the rest of the world”.