Total CEO: Oil Below $100/Bbl Threatens Some Projects

Total CEO: Oil Below $100/Bbl Threatens Some Projects
dj
Παρ, 12 Σεπτεμβρίου 2008 - 12:21
The price of oil has fallen to a level where some of the most expensive oil projects may no longer be commercially viable, U.K. newspaper the Financial Times reports Total SA (TOT) Chief Executive Christophe de Margerie as saying Friday.
The price of oil has fallen to a level where some of the most expensive oil projects may no longer be commercially viable, U.K. newspaper the Financial Times reports Total SA (TOT) Chief Executive Christophe de Margerie as saying Friday.

Total's very heavy oil sands projects in Canada require an oil price of $90 a barrel to achieve the 12.5% internal rate of return required for projects, and Total's deep water projects offshore Angola need $70 a barrel, he said.

The current oil price means there is no space in the industry for a windfall tax, he said.

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