Total cuts oil output targets

Total’s ability to resist the pressures on production facing its international rivals was called into question on Wednesday as the French oil major cut output targets by 20 per cent for the four years to 2010.

Christophe de Margerie, the new chief executive who took over in February, said on Wednesday that Total expected only 4 per cent growth between 2006 and 2010, against previous forecasts of 5 per cent.
It is the second time in three months that Total has been forced to rein in production forecasts and prompted a bitter reaction from some analysts, even though the group still expects to outpace rivals BP and Shell.

“We are very disappointed,” said one who refused to be named. “In the end it shows they are just like BP and Shell. They may be less present in declining zones, and have a better cost structure, but they too are losing growth.”

Most majors have been forced to scale back production targets, faced with maturing oil fields, skyrocketing costs, and the growing readiness of oil-rich nations to demand a higher price for access to resources.

A recent study found that while worldwide spending by oil companies had reached record levels, reserve volumes had increased by only 2 per cent.

However Total’s focus on less mature regions and its recent exploration successes had buoyed hopes it would be able to resist some of the pressures facing rivals, which are forecasting production growth of about 2 per cent.

MSNBC