He said the oil industry may be entering a new investment cycle as supply constraints build up amid geopolitical disruptions. The sector is facing structural supply limits after years of lower spending. “The oil industry entered this shock already underinvested,” he said, noting that reserves, capex and exploration have all declined from earlier peaks.
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Bhandari pointed to limited future supply additions and maturing shale output as key factors. “We don’t have a lot of long-cycle oil projects,” he said, adding that US shale production is also plateauing after driving growth over the past decade.
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He also highlighted demand trends, saying the expected peak in oil consumption is shifting further out. This combination is expected to support higher prices and trigger investment. “We do think oil capex needs to return in the sector,” he said.
He said investment will likely start with short-cycle projects such as shale and deepwater, with opportunities across oil producers and service providers. “Oil equities are future instruments… they price forward,” he said, indicating preference for equities and services plays.
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In India, Bhandari said energy security will remain a focus, with continued investment in transmission and a role for coal alongside renewables.
He also flagged pressure in downstream markets, especially refining and petrochemicals, due to supply disruptions in products such as diesel, jet fuel and naphtha.
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