Adipec 2016: Oil giants swear by cost cutting

abu dhabi - Leaders emphasise the need to be efficient and optimally utilise oil resources

The top business leaders of the world got together to share their views on the world oil outlook and each one pointed out the need to be efficient.
Top honchos of BP, Eni, Exxon, Total and Qatar Petroleum held deliberations as the 19th Abu Dhabi International Petroleum Exhibition and Conference started on Monday.

BP group chief executive Bob Dudley focused on the need to cut costs. "Geo-political risks to the world are high and challenges are increasing in many parts of the world. Oil prices remain lower despite the fundamental of supply and demand being in the point of balance. There is a continuous effort to cut capital costs. We have to be competitive in price and it will put a premium on efficiency."

Eni CEO Claudio Descalzi said the centre of gravity has shifted. "We have structural changes. Energy demand is growing. Gas and oil are the future but we have to be ready to face a different environment. We have to make big investments. The engine of growth is no more there. The centre of gravity is no more where it used to be."

Exxon Mobil president Darren W. Woods said the need of the hour was greater cooperation among all countries. "Going forward, we are going to see markets moderate. For success in this industry, we have to be prepared for a longer price environment. We need to have lower cost of supply. We can do that by leveraging technology. We need greater cooperation between oil-producing and consuming nations and policy makers too."

Qatar Petroleum president and CEO Saad Sherida Al Kaabi said there is no need to interfere in the market and called for patience.

"We are in a very difficult market. For the last two years, we are optimising and trying to be as efficient as we can. Economies have gone into recession. But despite this, the oil industry is doing well because we are resilient. We have to be patient and not interfere with the markets. We should let market forces work their way but at the same time invest heavily. People should remain calm and reduce operating costs."

Total CEO and chairman Patrick Pouyanne highlighted the need to focus on bringing reliable, affordable and clean energy.

"We have two ways in the energy business - short-term and long-term. Till last year, with the average oil price at $55 and above, people were complaining but this year with an average of $45 and moving to $50, we seem to be happy. In each difficulty, we need to see the positives. We need to be more efficient and resilient from here on. In the longer term, we need to bring reliable, affordable and clean energy to the world."

- ashwani@khaleejtimes.com