• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 20 hours The United States produced more crude oil than any nation, at any time.
  • 6 days e-truck insanity
  • 2 days How Far Have We Really Gotten With Alternative Energy
  • 5 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 4 days James Corbett Interviews Irina Slav of OILPRICE.COM - "Burn, Hollywood, Burn!" - The Corbett Report
  • 5 days The European Union is exceptional in its political divide. Examples are apparent in Hungary, Slovakia, Sweden, Netherlands, Belarus, Ireland, etc.
  • 6 days Biden's $2 trillion Plan for Insfrastructure and Jobs
  • 6 days "What’s In Store For Europe In 2023?" By the CIA (aka RFE/RL as a ruse to deceive readers)
  • 9 days Bankruptcy in the Industry
Julianne Geiger

Julianne Geiger

Julianne Geiger is a veteran editor, writer and researcher for Oilprice.com, and a member of the Creative Professionals Networking Group.

More Info

Premium Content

Shell And TotalEnergies See Risk Of Higher Oil Prices

  • Shell CEO van Beurden: there is more upside than downside for crude oil prices.
  • Van Beurden sees ongoing tightness in crude oil supply.
  • TotalEnergies CEO Pouyanne also stated that he saw room for demand to go higher with limited room for production growth.

As oil companies begin to report their impressive Q2 results on the back of high oil prices, they are also offering premonitions of even higher oil prices on the back of the tight supply situation.

Shell’s Chief Executive Officer Ben van Beurden told Bloomberg TV on Thursday that there is more upside than downside for crude oil prices. “Demand hasn’t fully recovered yet and supply is definitely tight.”

Van Beurden added that he sees little room for more oil production from OPEC or U.S. shale producers—and the world oil supply could be even further curtailed as the full impact of Russia sanctions goes into effect later this year.

When asked about how retail prices for oil and gas could be lowered, van Beurden responded, “We cannot perform miracles.”

“Energy markets are tight,” van Beurden said, adding that supply would be constrained and markets tight for the rest of this year and well into next.

The same general sentiment was touted by TotalEnergies CEO Patrick Pouyanne, who said he saw room for oil demand to go higher, but not a lot of room for oil production to go higher.

Both Shell and Total announced plans on Thursday to extend share buybacks on impressive results that doubled and nearly tripled Q2 2021 earnings, respectively.

Shell reported that second-quarter earnings hit a new record of $11.472 billion, while Total reported a net income of $5.7 billion.

The tight physical market has kept a floor under oil prices even in the face of a recession that could dent demand.

That tight physical market is precisely what has emboldened TotalEnergies to forge ahead with some riskier projects in Mozambique and Uganda.

The price of Brent crude oil has climbed to $107 per barrel—up $29 per barrel since the start of the year. The oil majors’ projections that oil prices could go still higher will not come as welcomed news to retail gasoline buyers or the Biden Administration, which has battled high gasoline prices since taking office.


By Julianne Geiger for Oilprice.com

More Top Reads From Oilprice.com:

Download The Free Oilprice App Today

Back to homepage

Leave a comment
  • Mamdouh Salameh on July 28 2022 said:
    Shell, TotalEnegies and other oil supermajors could expect bumper revenues for years to come. And the irony is that this windfall is coming to them with hardly any efforts on their part.

    The source of their manna is rising oil prices underpinned by a bullish but tight global oil market, robust oil demand and a shrinking global spare oil production capacity.

    Since 2019 and through the pandemic, the oil supermajors’ contribution was negative as a result of some of them particularly the European ones like Shall, BP and TotalEnergies trying to greenwash themselves and also letting themselves being bullied by environmental activists to divest oil and gas assets and refrain from investing in them. The obvious result has been a global underinvestment in the expansion of oil and gas production capacity and skyrocketing oil and gas prices.

    Yet, they are reaping huge revenues for virtually doing nothing. So the choice before them now is either to pay huge windfall taxes or invest heavily in capacity expansion.

    Dr Mamdouh G Salameh
    International Oil Economist
    Global Energy Expert

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News