WHAT DO DE MARGERIE’S COMMENTS MEAN FOR THE OIL SECTOR ?
PETER HUTTON NCB
“De Margerie has consistently highlighted the need for continued investment to meet demand. In fact, we need a new Saudi Arabia every two to three years. Total claim $60-70 oil is insufficient for new projects eg oilsands, so this is effectively a hint for higher oil or lower project costs.”
MALCOLM GRAHAM-WOOD HANSON WESTHOUSE
“As ever, de Margerie makes interesting points regarding long term investment in oil, however state backing is unlikely in the west and as a result he is going to be disappointed. He is however right that the oil price will inevitably rise and investors now will be duly rewarded.”
CRAIG HOWIE ASTAIRE SECURITIES
“Although international E&P spend has remained quite resilient compared to North America, continued investment is undoubtedly needed to combat reservoir depletion worldwide. Achieving year-on-year production growth has become a real problem for the majors.”