With oil prices in a protracted period of stability, oil companies are gradually getting the confidence to invest Again, the chief executive of Australia’s biggest independent oil in addition to also also gas producer indicated Monday.
“the idea’s a nice spot where the idea will be at the moment, around $60 in addition to also also $65 per barrel,” Peter Coleman, CEO of Australian oil in addition to also also gas producer Woodside Petroleum, told CNBC at the Credit Suisse Asian Investment Conference in Hong Kong.
“You can almost say that will $65 today will be kind of the brand new $80 of what we were three or four years ago, simply because we’ve got cost down in addition to also also we’ve got margin back into our business,” he said, adding that will current cost levels meant that will operations are sustainable today.
On Monday, oil prices pared some of their gains made after settling above $62 within the last session.
Although Coleman cautioned that will the idea was still too early to budget for $65 oil, he also acknowledged bullish developments within the space.
“At This particular cost, you’re starting to see brand new projects go to final investment decisions so people are starting to get that will confidence again that will they can invest,” Coleman said, adding that will plenty of companies are creating substantial investments within the renewable energy space.
According to Coleman, companies are also starting to change their portfolio mix in a bid to tackle their carbon footprint.
“You can see they’re going more gas-oriented. They’re actually starting to say the mantra will be moving through being an oil in addition to also also gas company to being a gas in addition to also also oil company,” he said.
Woodside announced earlier within the month that will its intention to buy Exxon Mobil’s 50 percent stake within the Scarborough gas field in Australia had been approved by BHP, a stakeholder within the development.