• 4 minutes Your idea of oil/gas prices next ten years
  • 7 minutes WTI Heading for $60
  • 13 minutes Could EVs Become Cheaper than ICE Cars by 2023?
  • 1 hour Pros and Cons of Coal
  • 28 mins Why does US never need to have an oil production cut?
  • 12 hours US continues imports of Russian gas which it insists Europe should stop buying
  • 17 hours Is California becoming a National Security Risk to the U.S.?
  • 3 days Germany Discusses Lifting Ban on Deporting Syrians
  • 19 hours Regular Gas dropped to $2.21 per gallon today
  • 13 hours Warren Buffett
  • 1 hour Oil Prices
  • 9 hours And Just Like That, Everybody Stopped Talking About $100 Oil
  • 1 day Trump administration slaps sanctions on Saudis over Khashoggi's death
  • 2 days Pence says South China Sea Doesn't Belong To Any One Nation
  • 3 days Anyone holding Nvidia stock?
  • 2 days Commission: U.S. Could Lose Wars With Russia, China
Is OPEC’s Oil Outlook Too Bullish?

Is OPEC’s Oil Outlook Too Bullish?

Many market watchers agree that…

Oil Executive: Industry Needs ‘Another Iraq Or North Sea’ To Meet Demand Growth

Oil flaring

The global oil industry needs to find “another Iraq or North Sea every year” to plug the shortfall of oil supply as demand continues to grow, Majid Jafar, the chief executive of the UAE-based Crescent Petroleum, told CNBC on Thursday.

According to the oil executive, the industry continues to see underinvestment as spending on exploration and new projects has not recovered enough from the recent downturn.

“The big message here has been the industry is not investing enough. Investment is down 50 percent from where it was three or four years ago and hasn’t really recovered,” Jafar told CNBC on the sidelines of an OPEC conference attended by many oil industry executives.

“Actually, what we have seen in this meeting is we need to add another Iraq or North Sea every year and it is not clear where it is coming from,” Crescent Petroleum’s chief executive noted.

Currently, the global oil industry has an image problem, with the majority of the public thinking that it’s a dying industry and “not important anymore,” Jafar said, but added that oil and gas still meets 60 percent of global energy output, compared to the 3-percent share met by renewables.

Earlier this month, BP’s Group Chief Financial Officer, Brian Gilvary, said that “We’re not seeing under-investment coming through yet.”

Related: The Last Oil Frontier In The Gulf Of Mexico

In March, Saudi Aramco’s president and chief executive Amin Nasser warned that the industry would need to invest more in exploration, after record-low discoveries last year.

According to Nasser, the industry—which has already lost US$1 trillion in investments during the downturn—needs more than US$20 trillion over the next 25 years to meet rising demand for oil and gas.

More recently, higher oil prices and lowered development and project costs have led to cautious optimism and measured risk-taking within the industry that is set to see an uptick in global oil investment this year, energy consultants Wood Mackenzie say.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment
  • Brian Bresee on June 21 2018 said:
    A new Iraq or North Sea every year, Really?

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News
-->