Shell's Voser says OPEC can balance libya shortfalls
Petroleumworld.com, Mar 04, 2011
Royal Dutch Shell ( RDSa.L ) CEO Peter Voser said on Friday OPEC can compensate for Libya shortfalls, but oil supply tightening could become an issue in future due to lack of investment in the sector in recent years.
"I think as OPEC has highlighted there is enough spare capacity to actually replace shortage of oil out of Libya and it will over time balance itself again," Voser told Reuters.
"Once the Middle East calms down, the oil price will be in the area where it is determined by supply and demand," he said. "Hopefully in the longer term it will not have substantial impact on economy. I still see economic growth in 2011."
Voser warned of likely supply tightening in the future due to lack of investment in the sector in the past two to three years.
"We may face a situation at one stage where supply cannot meet demand," Voser said. "That's where OPEC spare capacity will help but we have to replace significant barrels because of natural decline over time."
Voser said Shell refineries was in a regular turnaround period, when plants close temporarily for routing maintenance.
"But this is normal," he said. "We have just restarted cracker's unit in Pernis and Port Arthur."
Story by Roberta B. Cowan and Ivana Sekularac from Reuters
March 4 | Fri Mar 4, 2011 5:57am EST
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