CEO Rosneft: excessive oil supply to end in 18 months

Rosneft CEO Igor Sechin expects the process of normalization of situation with commercial reserves of oil and oil products to begin in 18 months
CEO Rosneft: excessive oil supply to end in 18 months
20 October 12:10 2016 Print This Article

Oil offer surplus on the international market will end in the next 18 months, CEO of Rosneft Igor Sechin said on Thursday during the Fifth Eurasian Forum in Verona.

“We should see an end to the period of excessive oil supply on the market in the next 18 months, and the process of normalization of situation with commercial reserves of oil and oil products should begin,” Mr Sechin said, adding that “despite certain recovery of shale oil production in the US, the overall level of US oil production will probably remain lower than the 2015 highs. The oil price will exceed USD55 per barrel.”

According to him, the shale oil production has good chances to switch to consistent growth but it “will not look like the 2013–2014 spike,” adding that that will largely remain as a regional phenomenon and contribute to the balance of oil and oil products on the US market.

CEO of Rosneft also said that Russian state-owned oil major expects growth of oil consumption at at least 15 million barrels per day by 2040, and demand for at least 40 million barrels of additional production capacities.

Therefore, “the world economy should find possibilities for production of new oil in amounts that are fourfold higher than the oil produced by Saudi Arabia to satisfy demand in future,” Sechin said. And Russia will be able to boost its oil production and add up to 200 million tonnes to annual output in future should the market demands it. according to MR Sechin.

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