DAVOS, January 21. /TASS/. French energy giant Total's chief executive on Wednesday predicted mid-and long-term oil price recovery. Patrick Pouyanne based his forecast at the Davos economic forum on a new turn of cyclic developments in the oil and gas industry.
Oil price at around $50 per barrel means investments are being cut, he said, adding that funding of energy-saving technologies is declining. Cycle duration can not be predicted, he said, adding that it took six months in 2009 and lasted for years in 1986.
The previous cycle saw huge funds arrive, followed by new technologies, Pouyanne said. New projects supporting the demand for high-performance technologies appeared, particularly in the United States.
Nobody was talking of shale fields in 2007 though these technologies were known, Total's chief told delegates. They merely hadn't generated demand until oil prices reached a certain level.
Energy-saving technologies were developing in parallel, he said, noting high volumes in the market while demand was low.