Chairman of Shell: difficult to predict volatile oil prices 9/17/2015

Chairman of Shell: difficult to predict volatile oil prices
9/17/2015 0 Comments

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It will reduce the work force by about 6,500 jobs, as part of plans to cut costs after oil prices fell. BAGHDAD / Obelisk: CEO of Royal Dutch Shell Ben van Bjordn said, it is difficult to predict a recovery in oil prices. He said Bjordn program in the "BBC", and I followed, "the obelisk," It is very, very fickle field of action with regard to supply and demand, oil prices respond very little between supply and demand for the difference. " Oil fell below $ 50 per barrel last year. Predicted Goldman Sachs Group, earlier this month, oil prices could drop to less than $ 20. Asked by the BBC about the future of oil prices and will accrue to, President of Shell said: "The honest answer to that is I do not know." He continued: "decline in oil prices to half on the back of increasing the supply by a small percentage, and this shows how the whole system is flexible, and that is simply that oil is cheap and too-
It's not as if that demand will respond." He added that oil became cheaper if you will not tempt consumers using too much of it, as can happen with other products. He explained that "people do not pay to work twice because to do so more economically feasible, than it was before." He said the demand for energy, and the production of shale oil in North America, and the policy of OPEC and the costs of the industry to help determine where the oil will go in the future. Keep OPEC producers, particularly Saudi Arabia, on the high levels of production in an effort to reduce US production of shale oil, which is economically inefficient in light of lower prices.

The organization manages the situation in the light of falling oil prices by maintaining low debt. He added that the organization's debt is about 12 percent of total capital.

Shell said in June it would cut the work force by about 6,500 jobs, as part of plans to cut costs after oil prices fell.

He replied Bjordn response to a question about how renewable energy can affect the work, that solar energy can appear much larger than the world's energy needs as a shareholder.

He said: "I have no hesitation in predicting that solar energy will be the backbone of the dominant energy system we have, in the coming years, and certainly for the electricity system."

However, he said that during that period, the demand for energy will double, which will lead to the transition from several decades of domination of fossil fuels for energy.

He also said he would feel disappointed if Britain out of the European Union, a private company that has a legacy of work in Britain.

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