Variants and the habitual volatile nature of the global oil market are casting clouds on the energy industry’s attractiveness to potential generalist investors. It will take more visibility on spare capacity and oil prices to lure them, according to Ezra Yacob, president of U.S. shale giant EOG Resources Inc..

It comes down to sustainability, Yacob said this week, of cash return yields and shareholder returns.

“It’s hard to imagine, but it’s still kind of early in the recovery with the number of variants that are out there,” Yacob said during the Barclays CEO Energy-Power Conference. “I think that’s giving a little bit of pause for the generalist. Once that starts to clear up and the generalist investor can really start to see that the industry has changed, there is a lot more discipline in U.S. shale, I think you’ll start to see the generalists come back to the space in more meaningful ways.”

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