The chief executives from three major energy companies and a high-level minister from the US zeroed in on energy security in a wide-ranging discussion at Adipec.

They saw a clear link between security and investment in the oil and gas sector, and they broadly agreed on the critical need for more long-term capital investment.

The discussion opened with a question on the short-term outlook: will there be a glut in the oil markets in 2026?

Their perspectives on why there would not be a near-term glut led them to express concern for regulatory regimes and investment.

Looking long term

James Danly, US Deputy Secretary of Energy, put focus on the regulatory and policy framework rather than short term market forces.

“I don't think there's going to be glut,” he said. “But the most important thing is that markets are cyclical and you have waxing and waning supply and demand over time.

“The policies that should be enacted are deregulatory efforts to ensure that that price signals can be responded to over the long haul and that demand can be satisfied as nimbly as possible.

“So I'm actually less worried from a policy standpoint about the moment-to-moment market conditions or production rates, as whether the regulatory and policy framework is such that businesses can respond to market signals correctly.”

Claudio Descalzi, CEO, Eni, also did not see signs of oversupply in 2026.

“First of all, because in the last 12 years, we are investing half of what we need to invest to increase production,” he said.

“And we know that demand is increasing, and the supply is more or less there, but now in 2026 there is additional one million barrels. It's an average, but we are not investing enough.

“We have Guyana, we have Brazil. There is no other big project that can start producing.

“So we have demand increasing and we don't have enough supply and enough investment.

“I think that we have to be wise and attentive at what is happening. There is not enough investment.”

Not enough ploughed back

Tengku Muhammad Taufik, President and Group CEO, PETRONAS, also responded to concerns about long-term investment.

“Last year there was a number north of $3 trillion (of investment), almost two-thirds of that went to renewables and lower carbon.

“There's not been enough being ploughed back into the core fossil fuels and hydrocarbons, which form the backbone of our energy systems today, which will bring us to the subject of resilience. -OGN/TradeArabia News Service