BHP Billiton warns new production sources needed to meet oil demand

BHP Billiton's Petroleum President, Tim Cutt.
BHP Billiton's Petroleum President, Tim Cutt.

BHP Billiton’s Petroleum President, Tim Cutt, has highlighted the urgency of the oil industry to find new supply sources. Speaking at the Australian Petroleum Production and Exploration Association (APPEA) conference in Melbourne this week, Cutt stated that US oil production has surged by 3 million barrels a day in the past four years due to the boom in shale, and is expected to peak in the next decade. This in turn has increased demand for new sources globally.

 

In the past twenty years, the industry has been discovering under half the amount of oil it consumed each year, with current consumption at 30 billion barrels annually. In the previous four years, discoveries have been less than 10 billion barrels of oil per year, with 2014 amounting to less than six billion.

 

Cutt said: “Backed by the growth in unconventional oil, the United States will play an important role in meeting this effective demand gap. Nevertheless, additional supply will be required from new sources around the globe. These sources of supply will become increasingly important given that U.S. production will likely peak within the next decade.”

 

In recent months, BHP has become less confident about the economical prospects of shale oil and gas, therefore shifting focus back on “conventional” oil sources.

 

“In addition to looking inward to simplify and become more productive, we must also push for policy and regulatory frameworks that enable our industry,” Cutt added.

Please rate

Comments 

Ctrl + Enter

Most Read

How Blockchain Technology is changing the Energy Sector

How Blockchain Technology is changing the Energy Sector

The disruptive potential of blockchain technology is becoming more evident with every passing day. From the proliferation of cryptocurrencies, and its increasing applications in other areas including banking, gaming, music licensing, as well as the energy sector, blockchain technology is

How to deal with interview rejection

How to deal with interview rejection

Sorry we think you’re not the ideal fit for this position or sorry to inform you, but you are not exactly the candidate we were hoping for – these are some of the replies you may get from an unsuccessful interview, and while it can sting for a day or two, you should not dwell on it any

Mirroring England’s Young World Cup Team in Engineering

Mirroring England’s Young World Cup Team in Engineering

Alas, the cup didn’t come home. However, it's wasn't all doom and gloom as 4th placed England at the just concluded FIFA World Cup in Russia, were not initially expected to perform wonders. However, in the course of the tournament, the belief grew, and hopes were raised. Gareth

This website uses cookies to enhance your user experience. By continuing to use this site, you consent to our use of these cookies. See our Cookie Policy.