BHP oil boss tips surge in de­mand

Pilbara News - - News - Peter Wil­liams

BHP Bil­li­ton’s oil and gas boss says the world in the 2020s will need a new oil sup­ply that is a “stag­ger­ing” one-third of cur­rent de­mand.

Petroleum op­er­a­tions pres­i­dent Steve Pas­tor also told an en­ergy con­fer­ence in Hous­ton that BHP ex­pected a bal­anced mar­ket in 2017 for the first time in nearly three years.

“And as we look ahead to the 2020s we see com­pelling mar­ket fun­da­men­tals,” Mr Pas­tor said in the CERAWeek speech.

“We es­ti­mate that by 2025, based on about one per cent per an­num global de­mand growth, and 3 to 4 per cent nat­u­ral field de­clines, the world will need new oil sup­ply of ap­prox­i­mately 30 mil­lion bar­rels of oil per day, a stag­ger­ing one-third of cur­rent global de­mand.”

Mr Pas­tor said oil shale played a part in fill­ing the gap, but was not enough. That pre­sented a sig­nif­i­cant op­por­tu­nity for deep­wa­ter pro­duc­tion, despite its high-risk, high-re­ward na­ture.

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