Currency converter
^
All news
News Search Topics
ОК
Use filter
You can filter your feed,
by choosing only interesting
sections.
Loading

Rosneft CEO: Oil to remain basis of global energy sector for 20-30 years more

October 19, 11:55 UTC+3

Global economic growth will lead to higher oil demand, Igor Sechin believes

Share
1 pages in this article
© Vladimir Smirnov/TASS

VERONA, October 19. /TASS/. Rumors regarding the ‘death’ of oil are highly exaggerated and it will remain the basis of the global energy sector for 20-30 years more, Chief Executive Officer of Russian oil and gas producer Rosneft Igor Sechin said at the X Eurasian Forum.

"I can tell you that rumors concerning the ‘death’ of oil are highly exaggerated. Oil will remain the backbone of the global fuel energy sector for 20-30 years to come and later on," Sechin said.

Shale oil producers will not have positive cash flow earlier than 2020, provided that the price will be $70 a barrel, the businessman noted.

"Historically high costs of infrastructure and considerable drilling scopes determined the specific amount of investments into shale oil development, which is one third higher than indicators of conventional oil projects. The industry will see the positive cash flow in 2020 at the earlier and provided that the oil price reaches about $70 per barrel by that time," the top manager said.

Sechin noted that no surge in oil prices should be expected recently.

"The balance is fragile and unstable so far. Shale oil production in the United States, which accumulated a huge stock of drills but uncompleted wells, may provide a significant production inflow in 2018 at an appropriate price level and destabilize the market again. I think therefore that we should not expect a surge in oil prices in near future," Sechin said.

At the same time, growth rates of the global economy, particularly in developing nations, will require further increase in the liquid hydrocarbons offer by 0.7-0.8 mln barrels daily during the coming decade, the top manager said.

"Expected rates of the world’s economic growth, particularly in developing economies, will require a continuing increase in liquid hydrocarbons’ offer by 0.7-0.8 mln barrels daily during the next decade. Growth will continue further on. I would like to note in this regard that rising demand for energy resources will not merely entail appropriate production dynamics but will also provide a major multiplying effect for development of related economic sectors," Sechin said.

Show more
Share
In other media
Реклама
Partner News
Реклама