Sechin predicted demand for additional oil production in three years

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Сечин спрогнозировал спрос на дополнительную добычу нефти через три года

Chairman of the Board of “Rosneft” Igor Sechin made a report at the opening of the conference the FT Commodities Global Summit, in which he analyzed the key trends and factors of development of world commodity markets. This is stated in the press release received by the editors “ru”.

Noting that the decisive factor in the sharp fall in oil prices is a significant excess of supply over demand, Igor Sechin expressed the view that the excess supply will be eliminated within two years. “During this time, the surplus will be neutralized due to the growth of the global economy and consumption, depletion of existing fields, conservation complex and inefficient projects”, — said the head of “Rosneft”. In his opinion, the phase of low prices cannot last long, at least on the main reason the current prices do not provide full cycle costs and generating losses for those companies who work in complex fields.

The head of “Rosneft” also drew attention to the factor drop-down investment plays a key role in the oil industry. “We are seeing a very significant reduction of investment activity — already more than 250 billion dollars, and this will have long-term consequences,” — said Sechin. He also drew attention to the fact that the demand for oil and oil products steadily growing — in the year the gain is 1.3-1.8 million barrels per day. “We can expect that in conditions of moderate oil prices to continue to increase the annual pace of no less than 1.2 million barrels per day, so that in the period to 2020 would require additional annual volume of about 6 million barrels compared to year 2015. In addition, existing mines every year there is a drop of capacity not less than 3 million barrels per day”, — concluded the head of the state company.

Sechin also reported that a number of major mining, including expensive projects that were started in the period of high prices, demonstrate the increase or stable level of production.

Thus, according to him, representatives of the Russian oil industry were not supporters of unnecessarily high prices, and their rise prominent role played by the policy of a weak dollar, which followed the US Federal reserve. Change this policy, according to the Head of Rosneft, had a lot of pressure on oil prices. Therefore, concluded Igor Sechin, “anchor” oil contracts and the dollar is not a factor in the stabilization of the oil market. So, all the more urgent becomes the question of the use of multi-currency pricing in the oil markets, especially in regional transactions.

In conclusion, Igor Sechin noted that does not share the view that commodity markets were experiencing the so-called “supercycle low prices,” which, under forecasts of some experts to last 10-15 years. The head of “Rosneft” considers that “the demand for additional production will recover in a period of three to four years”.

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