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

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

The discussion openedwith a question on the short-term outlook: will there be a glut in the oilmarkets in 2026?

Their perspectives onwhy there would not be a near-term glut led them to express concern forregulatory regimes and investment.

Looking long term

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

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

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

“So I'm actually lessworried from a policy standpoint about the moment-to-moment market conditionsor production rates, as whether the regulatory and policy framework is suchthat businesses can respond to market signals correctly.”

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

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

“And we know thatdemand is increasing, and the supply is more or less there, but now in 2026there is additional one million barrels. It's an average, but we are notinvesting enough.

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

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

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

Not enough ploughedback

Tengku MuhammadTaufik, President and Group CEO, PETRONAS, also responded to concerns aboutlong-term investment.

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

“There's not beenenough being ploughed back into the core fossil fuels and hydrocarbons, whichform the backbone of our energy systems today, which will bring us to thesubject of resilience. 

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