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French oilgigant will not produce more oil

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Will the demand on oil keep incresing?

While many expect the consumption of oil and production of the same black energy will increase, said the French oil giant Total CEO that the top is almost reached. It writes the Financial Times.

Unable to become more effective

Christophe de Margerie, Head Total, does not believe that the world will ever be able to extract more than 89 million. barrels of oil a day, a marginal increase from levels around 84 million. barrels today. The background is high production costs and political problems in oil rich countries like Iraq and Iran.

Crisis influences the demand

Financial Times says that Total has revised its estimates down to the minimum 4 million. barrels of oil a day by 2015 because of the economic crisis and the decline in oil prices. Simultaneously, investments in the oil sector being hit hard by a slight approach to liquidity.

Long term demand

Christophe de Margerie believes that the slump in demand for oil during the financial crisis will last a short time and that in the long term will continue to be supply, limiting consumption in the world.

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februar 16th, 2009 at 10:41 am

Posted in business,economics

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