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allowing companies to re-evaluate their
strategies and investments with greater
clarity. With return on investment as the
primary criterion, many companies that
previously announced a shift to renewables
are once again eyeing the promising pros-
pects of oil and gas projects.

The big picture of the energy market
Amid profound geopolitical and geoeco-
nomic shifts, renewable energy sources
retain their momentum as a sustainable
option. However, they are gradually losing
their appeal compared to fossil fuels, which
are returning to the forefront as a strategic
tool of power for national economies.
This trend is reinforced by a strong momen-
tum in the demand for fossil fuels in key
countries like China and India, and by
the ambitions of developing economies,
such as Namibia, Suriname, Congo, and
Mozambique, which seek to exploit their
substantial hydrocarbon reserves. These
conditions are creating second thoughts
among energy giants that had temporarily
turned to renewables.
These reservations are further intensified
by the International Energy Agency’s (IEA)
recent estimates, which show a shortage
in the global oil market, despite the appar-
ent surplus reflected in the market’s sup-
ply-demand balance. At the same time,
the IEA projects an accelerated natural gas
demand growth of 2% in 2026, which will
push global consumption to an all-time high
of 4.35 trillion cubic meters.
The re-election of Donald Trump as Pres-
ident of the United States seems to have
further complicated the landscape. The
Republican president has openly advo-
cated for fossil fuels, dismissing any con-
cerns about climate change and labelling
renewable energy sources as unreliable and
costly. Recently, through the One Big Beau-
tiful Bill Act, he required US federal agencies
to enhance provisions that abolish or amend
tax incentives for solar and wind energy
projects starting in 2026. It is worth noting
that, under the existing legal framework,
developers of renewable energy projects
could claim a 30% tax credit through 2032.
Under the new provisions, this advantage is
essentially eliminated, impacting the finan-
cial viability of “green” projects.
All the above factors converge to strengthen
confidence in oil and gas projects, reinforc-
ing the belief among many companies that
Credit: EPA/EUGENE GARCIA
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