Business

A supply crunch in the oil market looks inevitable

crude oil worker shaleAndrew Burton/Getty

The oil industry is at a multiyear peak in terms of profitability.
But since a 2014 global oil glut, investment has translated into a steep drop off in new discoveries.
The years of underinvestment could have set the scene for a supply crunch.

The oil industry is more profitable than at any time in years, yet the industry could fail to supply enough oil to meet global demand in just a few years’ time.

A series of second quarter earnings reports over the past two weeks has revealed surging profits across the oil industry, with some companies posting earnings that are double or triple from a year earlier. But even though they are flush with cash, the industry has not returned to the profligate spending levels that were common prior to the 2014 market downturn

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