The thing about going green is that it’s not going to be easy.
Speeding up the process means having to speed up the extraction and processing of the raw material resources involved, which in itself has an environmental and social impact. It is not something that can be developed overnight and it will take years to effectively recycle and recover these raw materials.
This makes the transition a bit more “painful” and even more from a financial point of view when you have to weigh it against the financial institutions that are cutting investment in the oil market, on which the world still depends heavily.
Putting two and two together, you can imagine what this will look like for the energy market over the next decade. As the green transition is slow to materialize and oil investments dwindle, it is difficult for producers to cope with the constantly rising demand conditions. In turn, this is a key structural narrative for why oil prices are expected to remain high in the meantime.