Updates and analysis from Wells Fargo Investment Institute on what federal budget, regulatory, and trade decisions could mean for investors.
Constrained output in the Energy patch
Global oil and gas output has been relatively flat this year despite the sharp rebound in energy prices, strong economic growth, and a drop in COVID-19 cases. Key drivers behind subpar production in this sector include pressure from investors and environmentalists along with government policies and discipline from OPEC+.1
- Constrained oil and gas output amid rising demand has led to higher energy costs with stronger profits and equity-share prices within the industry.
- The current environment for the Energy sector as it pertains to output could quickly change, triggering increased production and drilling — affecting prices; profits; and environmental, social, and corporate governance (ESG) policies.