Total Sees $70 Oil Price Floor as Producers Struggle |
| Bloomberg - Apr 10, 2008 |
New exploration and oil production projects will require prices to remain above $70 a barrel, leaving little room for a substantial decline in energy costs, said the head of Total SA, Europe's third-largest oil company.
``There is a new floor linked to costs'' of developing new oil fields which require a minimum of $70 or $80 a barrel, as drilling and other exploration costs rise, Total Chief Executive Officer Christophe de Margerie said today at an energy conference in Paris.
Total, along with Exxon Mobil Corp. and Royal Dutch Shell Plc, the world's two biggest publicly traded oil companies, needs to find new oil and gas reserves as resource-holding nations are squeezing international companies in favor of national champions. Supply constraints and burgeoning Asian demand support the rally in oil prices, which yesterday reached a record $112.21 in New York.
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- Posted: 2008-04-10 09:15:22
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