OIL price to remain low for several years: say BP chief Bob Dudley and Exxon chief Rex W. Tillerson

Why Exxon's boss believes oil prices will stay low for years


NEW YORK -- Exxon Mobil CEO Rex Tillerson expects the price of oil to remain low over the next two years because of ample global supplies and relatively weak economic growth.
Speaking at the company's annual investor meeting in New York, Tillerson cautioned that geopolitical turmoil could unexpectedly send prices higher. But he said that if tensions calm, much more oil is ready to hit the market -- a market that is already flush with crude oil.
Exxon's presentation to investors outlining its business plans through 2017 assumes a price of $55 a barrel for global crude. That's $5 below where Brent crude, the most important global benchmark, traded on Wednesday. It's about half of what Brent averaged between 2011 and the middle of last year.
Ref: http://www.ctvnews.ca/business/why-exxon-s-boss-believes-oil-prices-will-stay-low-for-years-1.2263613
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The chief of Exxon MobilRex W. Tillerson, says he expects the price of oilto remain low over the next two years . this is because of ample supplies and weak economic growth. At the company’s annual investor conference on Wednesday in New York, Mr. Tillerson cautioned that geopolitical turmoil could unexpectedly send prices higher, but he said much more oil was ready to reach the market. His remarks came the same day the Energy Department reported that United States oil supplies had grown to 444.4 million barrels, the highest level in at least 80 years. Exxon told investors that 16 new projects would begin producing oil and gas through 2017, helping the company increase production to 4.3 million barrels a day from four million barrels a day last year.
Ref: http://www.nytimes.com/2015/03/05/business/exxon-chief-expects-oil-prices-to-stay-low-for-2-years.html?_r=0
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The boss of oil giant BP Bob Dudley has said that oil prices could remain low for up to three years.
He added that could send UK petrol prices below £1 per litre.
He told BBC Business editor Kamal Ahmed in Davos BP was planning for low oil prices for years to come.
That is expected to lead to job losses and falling investment in the North Sea oil industry and elsewhere, curbing supply and eventually forcing the price back up.
Italian oil group Eni has said the next spike could be around $200 a barrel.
Eni's chief executive, Claudio Descalzi, said the oil industry would cut capital spending by 10-13% this year because of slumping prices.
He said that would create longer-term shortages and sharp price rises in four to five years' time, if the Opec cartel fails to cut supplies.
Mr Descalzi was speaking at the World Economic Forum in the Swiss resort of Davos.
Ref:
http://www.bbc.com/news/business-30913321

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