Traders see energy price spikes as transition progresses

Extreme volatility possible as underinvestment in upstream oil and gas creates supply gap, trading chiefs say

Extreme energy price volatility could persist through the next decade or longer as slowing investment in upstream oil and gas leaves a supply gap that renewables and nascent technologies such as hydrogen struggle to fill, senior commodity traders say. “This whole concept of the energy transition is not fully understood by the public yet,” Torbjorn Tornqvist, CEO of trading firm Gunvor Group, told the Energy Intelligence Forum 2021. “The reality is that there is a perception that we can do this and that energy prices will be cheaper. I think that is an illusion.” Tornqvist says alternative technologies are not yet sufficiently deployed to provide enough energy to replace hydrocarbons. Time an