BHP oil boss tips surge in demand
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.