The boss at Total, one of the world’s leading oil companies has asserted the company’s commitment to investing in the UK and in the North Sea for oil and gas production.
Total Oil Boss Says North Sea Oil and Gas Investment Promising
Patrick Pouyanne, Total CEO said this following up to 65,000 job losses in the industry and continued warnings about collapsing investments.
Speaking at the opening of a new Shetland gas plant Mr. Pouyanne said in a statement, ‘There is a future for the North Sea, no doubt about it.’
The Total boss asserted that while his French oil company was committed to investing in the region, it was important to be strategic in maximizing offshore oil and gas production.
Fluctuating oil prices
He added that the cost of operation would decline and this would allow oil firms to remain stable in the face of lower gas and oil prices.
Mr. Pouyanne said, ‘We need to be sure that at breakeven, we would be able to stay strong during the highs and the lows. Today, we are experiencing the lows.”
In addition to an estimated 65,000 job cuts in 2015, this year is expected to witness further job losses.
The UK Oil and Gas in February warned that offshore investment could decline to £1bn by the end of 2016, down from the average £8bn typically enjoyed by the industry.
The opening of the new plant in Shetland is part of a £3.5bn investment effort to establish gas field in the offshores of West Shetland.
It is expected that the Tormore and Laggan oil fields will produce up to 8 percent of gas and oil to meet the UK’s demand, providing energy to an estimated two million homes, according to the company.
Concerning the ups and downs of oil prices, Mr. Pouyanne added, ‘The price is just the way it is. While the price is lower today, we knew when we invested that the prices would be low sometimes and up sometimes. The job now is to make the most of the available assets.”
In March, UK Chancellor George Osborne lowered the headline tax rate on oil fields in an effort to encourage exploration and investment in infrastructure.