Concerns about peak oil demand and stranded assets may curtail the energy industry’s appetite for sanctioning projects with long lead times, according to Raymond James & Associates Inc.

The analyst team led by Pavel Molchanov in a note to clients on Monday said forecasting the peak of global oil demand is unsure “but suffice it to say, this question is steadily rising on the agenda of top-tier oil producers…that have a traditional overweight to long-lead-time projects.”

Some of the blame can be put on Covid-19’s devastating impacts to the economy and on oil and gas demand, noted Molchanov.

“Of Covid’s many effects, one of them has been to accentuate the risk that demand may peak sooner — and at a lower level — than just about anyone would have predicted 12 months...