Peak Oil is You
Donate Bitcoins ;-) or Paypal :-)
Page added on March 14, 2015
BP CEO: ‘It’s going to be very painful’
“We’re back into the normal world of volatility for oil and gas prices,” he said on a CNBC-hosted panel. “Anything that happens that fast can have unintended consequences.”
BP was the first European major to sound the alarm on tumbling oil prices – on December 10, it warned that it was implementing a cost-cutting program as a result.
In December, oil majors in Europe also received a stark warning from credit ratings agency Standard & Poor’s (S&P), which placed BP, Total and Shell on a negative watch. It means the three firms are more likely to have their debt rating downgraded over the next three months.
In January, BP announced job cuts in its onshore operations in the U.K. It told CNBC that it expected a reduction of around 200 staff and 100 contractor roles in light of “major reshaping” for the business and “toughening market conditions.”
Speaking on the same panel in Egypt, Philippe Boisseau, president of marketing and services at Total, said the price of oil was going to stay where it is.
He added that speculators were trying to bet where the price will be in the future, but stressed that nobody had the answer.
“We have both lower demand…and also we have global oversupply,” Boisseau said.
Egypt investment
Speaking at the investment event in Egypt, Dudley added that BP had operated continuously in the country for the last 25 years.
His comments come after the oil giant signed an deal to develop gas resources in Egypt, with investment of around $12 billion from BP and its partners. The company said the project underlined its commitment to the Egyptian market and was a vote of confidence in the country’s investment climate and economic potential.
Three days later, BP also announced a gas discovery in the East Nile Delta which it said was expected to be the deepest well ever drilled in Egypt.
“I think the time is absolutely right,” Dudley said about investing in the Middle Eastern nation.
“(Egypt) really is the lynchpin…it’s the largest market in the Middle East.”
On Saturday, Dudley said the investments would increase in gas production in the country by 25 to 30 percent.
7 Comments on "BP CEO: ‘It’s going to be very painful’"
Kenz300 on Sat, 14th Mar 2015 12:10 pm
Every OIL company needs to change its business model and become “ENERGY” companies…….
Investments in wind and solar would be more secure with less volatility.
Even OIL companies need to learn it is not good to put all your eggs in one basket. It is time to diversify away from fossil fuels and move to embrace alternative energy sources.
MSN Fanboy on Sat, 14th Mar 2015 1:46 pm
Kenz: “Investments in wind and solar would be more secure with less volatility”
ROFL… yes intermittent sources of energy do tend to be less volatile, don’t they Kenz.
Kenz, it has been said many times before, we need FF to create renewable tech, thus we will never stop using FF in some manner, even in the Cornucopia’s dystopian nightmare. LOL
I am just rather pithed off with your one line renewables will save us all kenz.
Apneaman on Sat, 14th Mar 2015 4:25 pm
It’s an “investment event”. Like in a Hollywood Western where the crowd of mouth breathers is standing around the wagon of the traveling snake oil salesman.
Makati1 on Sat, 14th Mar 2015 9:44 pm
Right on, Apneaman. Pure BS for the ignorant and lazy.
Northwest Resident on Sun, 15th Mar 2015 1:34 am
A more honest and blunt BP CEO would have said: “It is already very painful, but it is certain to become intolerably painful before the end.”
The oil industry is like a terminal cancer patient. It knows the end is approaching and has nothing to look forward to other than rapidly disintegrating health, pain, suffering and financial ruin. They can resort to accounting gimmickry, they can and will try to convince themselves that there is still a chance they might survive if they can just hang on long enough. But the appointment with reality gets closer day by day, regardless.
There will be pain. And there will be blood. More, much more, than is already the case. Reality can be delayed, but never avoided.
Mike989 on Sun, 15th Mar 2015 5:48 am
MSN you LAZY Right Wing Troll.
No, You Stay 100% invested in Oil, the world needs to see you dumbasses go bankrupt.
These “liberals” ARE Wrong.
Keep doing what you’re doing, I Pray to GOD.
Davy on Sun, 15th Mar 2015 7:49 am
Mikie989, get out of denial for your AltE nirvana that is not a silver bullet. You’re preaching a shiny happy BAU run with AltE is cat piss. Get real please and quit throwing insults to people like MSN who are preaching “get real”. Kenny boy is so far up his ass in the AltE nirvana agendist propagandist proselytizing I don’t even bother giving him hell.