Energy firms expanding, but cautious over risks

Energy companies are planning expansions to capture a bigger slice of future growth, looking past gloomy months on hopes the worst of the economic crisis is past, industry executives said this week.

But the optimism is tempered by the view the industry still holds many risks — Japan’s Idemitsu sees lower export margins this year and leading Asian trader Hin Leong says end user demand for distillates in Asia and Europe remains bad.
Those who survived the economic shake-up and demand slump, which brought oil prices hurtling down from the peak above $147 a barrel last July, are hankering after the part of the pie left behind by those who faltered.

Companies including European trader Trafigura and Singapore-listed Noble Group told the Reuters Energy Summit they aim to boost their trading presence with investments in two main areas — expertise and storage infrastructure.

Reuters