Oil in the Long Term

This article notes that investors in general remain wary of investing in oil especially if returns are likely to be challenged by the peak demand theory, or low-cost shale production in the medium term, or oil producers shifting their extraction of resources ahead of any pre-announced implementation of climate-based policies. Given the lack of investments in the sector and demand for oil being driven predominantly by non-OECD economies where population growth is on the rise, oil as an asset class could end up providing positive returns. Additionally, geopolitics will always be core to oil at least in the next decade.