American energy is suffering from a lack of longterm investment, which temporary fixes cannot alleviate, global head of commodities at Goldman Sachs Jeff Currie said on Thursday.
Downplaying the Ukrainian war’s impact on oil prices, Currie said soaring energy prices are due to a lack of U.S. investment in the fossil fuel sector.
“The global slowdown, let’s say it’s FED induced,” Currie said about the Federal Reserve increasing rates to combat inflation, “it may create a pullback in [oil] prices, but it’s not a longterm fix.”
“I want to emphasize demand destruction or demand slowdowns is not a fix to this problem,” Currie stated.
Currie said for a decade the U.S. has not invested into oil refineries and oil production capacity to properly