This week’s Super-Spiked video podcast is a discussion on risk taking and future capital availability for traditional energy companies of all shapes and sizes. If you are a public company, we appreciate that it is really difficult to buck the austerity demanded by shareholders. However, an inherently Super Vol macro backdrop and that very hesitancy toward new capital formation in the sector will undoubtedly lead to interesting risk / reward investment opportunities that some will look to capitalize on. Companies that look best positioned today to take advantage of potential opportunities include those that are privately-owned, though not necessarily private equity backed, as well as national oil companies (NOCs).
Finally, we discuss our view that EU climate & energy policies as well as the Glasgow Financial Alliance for Net Zero (GFANZ) is likely to put downward pressure on capital availability for traditional energy. In my view, no company in any region is immune from these pressures and understanding the direct or trickle down effects to your bank and insurance group is critical.