World oil production potential weakening: Total

LONDON (Reuters) – The oil price collapse has weakened the industry’s capacity to increase output and future production may top out at a lower level than earlier expected, the chief executive of major oil company Total (TOTF.PA) said.

Christophe de Margerie said that world oil output may hit a plateau below 90 million barrels per day in the years ahead, less than earlier envisaged.

“The capacity that the oil industry has to go to 93-95 million barrels per day is already over,” the CEO of the French oil major told reporters on Friday at a briefing in London.

Delays in heavy oil projects in Canada and Venezuela, which are suffering under lower oil prices and high costs, and the likely failure of Iraq and Iran to increase output as much as hoped, due to political difficulties, were to blame, he said.

Total has long been the least optimistic of the big international oil companies about the world’s ability to grow oil output enough to meet demand. Others, such as Britain’s BP (BP.L), deny any resource constraints.

Reuters