Total sees 2020 oil output peak, urges less demand

AMSTERDAM (Reuters) – France’s Total (TOTF.PA: Quote, Profile, Research) estimates global oil production will peak around 2020 if output growth continues at current levels and has advised governments to cool demand to avoid a supply crunch, its chief executive said.

“The capacity of raising (oil) production is a real challenge … if we stay with this type of production growth our impression is that peak production could be reached around 2020,” Thierry Desmarest told the World Gas Conference in Amsterdam on Wednesday.

If demand growth was cut to 1 percent from the nearly 2 percent experienced in recent years, the point of peak output could be postponed by 10 years, the French oil major’s CEO added.

“We say to governments, it’s urgent to take action plans to reduce oil demand growth,” Desmarest said.

Reuters