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Total CEO says more fossil fuel investment needed to avoid price spike

Published 10/18/2017, 02:31 PM
© Reuters. Total CEO says more fossil fuel investment needed to avoid price spike
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  • Add Total's (TOT -0.1%) Patrick Pouyanne to the big oil executives at London's Oil & Money conference maintaining that fossil fuels will remain the central part of their businesses for decades, despite investments in renewable energy.
  • Poyanne says oil companies must increase their investment in fossil fuel resources or risk a spike in crude prices, as deep capex cuts since the 2014 oil price crash could lead to tighter supplies in years ahead.
  • The CEO cites data showing that the annual number of new oil and gas fields approved had fallen from an average 35 during 2010-14 to just 12 since 2015, which has cut the amount of new production capacity added each year from 2.5M bbl/day to ~1M.
  • Statoil (OL:STL) (STO -1.1%) says it wants to raise spending in renewables and technologies such as carbon capture and storage to 15%-20% of its total spending by 2030, up from 5% today, but CEO Eldar Saetre says "oil and gas will definitely be around for a long time."
  • BP (LON:BP) CEO Bob Dudley told attendees at the conference that his company will continue to invest in renewables but that global demand would require fossil fuels to remain at the forefront "for the next few decades."
  • Now read: Ocean Rig Bids Below Market - A Warning To Competition

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