Shell finance chief sees continuing high oil prices

GENEVA (Reuters) – Energy prices will remain high next year, driven by demand from developing countries, but energy companies face massive cost pressures, Royal Dutch Shell chief financial officer Peter Voser was quoted as saying on Saturday.

…”Energy prices will remain high … Our concern is the development of costs. Financial spending for modernising our production plans is rising rapidly and cost inflation reduces profits,” he said.


Voser said costs rose at Shell by 10 percent this year against an industry average of 20 percent.

Oil rose 2.4 percent on Friday after a report showing a jump in U.S. personal spending relieved some concerns about the economic health of the world’s top oil consumer.

U.S. crude traded up $2.19 to $93.25 a barrel by 1850 GMT. London Brent crude gained $1.53 to $92.41.

Shell expects to get a green light to drill for oil in Alaska next year, despite resistance from environmentalists, he said.

Reuters