World News
Maersk Oil CEO Foresees Downward Pressure on Oil Prices
Falling gas prices could push down oil prices in the coming years, Maersk Oil CEO Jakob Thomasen has told financial television program The Street.
"Clearly with what happened on the gas price, we could foresee a downward pressure on the oil price in the years to come as well," he said.
U.S. spot prices for natural gas fell 31 percent in 2012, hitting their lowest price since 1999 at $2.77 per million British thermal unit (mBtu), according to the U.S. Energy Information Administration.
Thomasen wouldn't be drawn on saying where he thought oil prices were heading, but said Maersk oil organises its portfolio so it was "robust" to price fluctuations, and able to respond to drops in the oil price while also benefiting from rising prices when they occur.
He said the company is facing increases in rig rates and the price of services for the oil industry, but it expects to greatly increase its production levels in coming years.
"For 2013 our production is expected to continue around 240,000 to 250,000 barrels a day and then we do expect to see a ramp-up toward our target of 400,000 barrels a day in 2020," he said.
"So we believe we will flatten out and then start an increase in production going forward."
Maersk Oil's parent company, A.P. Moller-Maersk (Maersk), said last year it was shifting some of its capital away from the struggling container shipping market and into other businesses, including Maersk Oil.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 509.00 | 4.50 | 623.00 | 3.00 |
| Rotterdam | 463.00 | 7.00 | 623.50 | 2.00 |
| Houston | 471.50 | 4.50 | 627.50 | 3.50 |
| Fujairah | 501.00 | 4.50 | 714.00 | 1.00 |
| Global 20 Ports Average | 529.00 | 2.50 | 714.50 | 2.50 |
| Global 4 Ports Average | 486.00 | 3.00 | 647.00 | 2.50 |
| Global Average Bunker Price | 572.50 | 2.00 | 753.00 | 2.00 |
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