Oil Industry Headed for Record Third Straight Year of Cutbacks
- Supply may start to drop in two years, buoying price: Statoil
- Companies likely to reduce investment more this year and next
Statoil CFO: Some Signs of Recovery Amid Uncertainty
This article is for subscribers only.
Global crude supplies will start to dwindle in as little as two years, boosting prices, as the industry cuts investment to weather the worst market collapse in a generation, according to Statoil ASA.
Oil companies reduced capital expenditure last year and are likely to cut it further this year and next, Statoil’s Chief Financial Officer Hans Jakob Hegge said in an interview in London. Lower spending means there could be a “significant effect” on crude supply after 2020, he said.