Oil Price, Industry Costs Dominate Debate at SPE Amsterdam Meet
The oil price and need for the energy industry to reduce costs dominated debate at the opening session of the Society of Petroleum Engineers' Annual Technical Conference and Exhibition in Amsterdam Monday. The session, titled "Affordable Energy", included panelists from the International Energy Agency (IEA), ExxonMobil, PEMEX and Technip.
The recent fall in the price of oil – with Brent Crude plunging below $85 per barrel – prompted questions among an audience of hundreds of SPE delegates as to the viability of many oil and gas projects around the world.
Chris Besson, senior energy analyst at the IAE, believes it is important not to exaggerate the effect of this recent fall.
"Demand is still expected to continue to grow over the next year and in the following years. And supply is increasing by about the same amount," Besson said, conceding that estimates of a reduced increase in demand for oil over the next year may have been enough to send signals in the market that have prompted the current drop in oil prices.
"But if you look at the longer term, oil demand is going to continue to grow. It's not going to grow as fast as in the past, but there's no doubt that it will continue to grow. And on the supply side, the regions that are thought to be able to increase during the next few years will probably come to a saturation point – in maybe 10 years. And so, sooner or later, the market is going to become tense again and we should not forget that.
"Even during this period of lower prices… investment should continue. It's absolutely critical because of the long timescale in the industry. By the time projects really start to deliver – I can tell you the market's going to be tight again."
View Full Article
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- Offshore Australia Project Marks Step-Change (Jan 16)
- Venezuela Will Remap its Caribbean Oil, Gas Prospects (Jan 09)
- Offshore Guyana Wildcat Spuds (Jan 07)
Company: Pemex more info
- Mexico Fuel Sellers Said to Seek Pemex Alternative (Jan 11)
- AMLO Earmarks $23B to Boost National Oil Industry (Dec 17)
- Mexico Cancels Two Oil and Gas Auctions (Dec 12)
Company: SPE more info
- Oil Price, Industry Costs Dominate Debate at SPE Amsterdam Meet (Oct 27)
- SPE to Host 'World First' Event on Workplace Discrimination (Sep 08)
- SPE Names New Chairman (Aug 17)
Company: TechnipFMC plc more info
- GOM Subsea Contract Goes to TechnipFMC (Jan 09)
- Chevron Wellhead Deal Goes to TechnipFMC (Nov 14)
- Technip Wins Contract for Louisiana LNG Proposal (Oct 15)
Company: International Energy Agency (IEA) more info
- IEA Welcomes Return of Oil Surplus (Nov 14)
- IEA Urges OPEC to Open Taps as Oil Markets Enter 'Red Zone' (Oct 09)
- IEA Warns of Higher Oil Prices as Iran and Venezuela Losses Deepen (Sep 13)