Basic economics supply and demandStating the obvious. Decreased capex = decreased supply = increased price
Energy Transition Fad Will Send Oil Sky High
"Ironically, the wave of ESG investing in global energy markets may lead to much higher oil prices as a serious lack of capital expenditure on new fossil fuels dries up just as demand for crude continues to grow
Pressure from investors, tighter emissions regulation from governments, and public protests against their business have become more or less the new normal for oil companies. What the worldor at least the most affluent parts of itseem to want from the oil industry is tostop being the oil industry.
Reference: https://oilprice.com/Energy/Oil-Prices/Energy-Transition-Fad-Will-Send-Oil-Sky-High.html