Energy Sector Predictions For 2021

Energy Sector Predictions For 2021

Justin Trudeau, Canada's prime minister, speaks during a news conference at Rideau Cottage in ... [+] Ottawa, Ontario, Canada, on Friday, Jan. 22, 2021. U.S. President Joe Biden's cancellation of the Keystone XL project has put Trudeau in a situation where he has no good options to retaliate, but a failure to fight back could fracture the unity of his own country. Photographer: David Kawai/Bloomberg



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When I made my 2o2o predictions a year ago, the world was on the cusp of a pandemic that would upend the oil markets. In the process, it upended two of my energy sector predictions, but three others ended up being correct.

The Covid-19 pandemic last year was a black swan event that caused unprecedented fallout across the energy sector. The evolution of the pandemic this year will be the largest variable impacting the energy sector. Yes, larger even than any policies our new President will enact.

The energy sector is already off to a fast start in the equity markets this year, as the market is anticipating a return to normal. But if those expectations falter and it takes longer than