This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/news/business-34274352
The article has changed 4 times. There is an RSS feed of changes available.
| Version 0 | Version 1 |
|---|---|
| 'Volatile' oil price hard to predict, says Shell boss | 'Volatile' oil price hard to predict, says Shell boss |
| (about 9 hours later) | |
| Royal Dutch Shell chief executive Ben van Beurden has told the BBC a recovery in the price of oil is hard to foresee. | Royal Dutch Shell chief executive Ben van Beurden has told the BBC a recovery in the price of oil is hard to foresee. |
| "It is a very, very volatile business in terms of supply and demand. The oil price responds to very small mismatches between supply and demand," he told BBC Radio 4's Today programme. | "It is a very, very volatile business in terms of supply and demand. The oil price responds to very small mismatches between supply and demand," he told BBC Radio 4's Today programme. |
| The price of oil has roughly halved in the past year, to around $50 (£32) per barrel. | |
| Goldman Sachs predicted earlier this month it could fall as low as $20. | Goldman Sachs predicted earlier this month it could fall as low as $20. |
| When asked where oil prices may go next, he told the BBC: "The honest answer to that is I don't know." | When asked where oil prices may go next, he told the BBC: "The honest answer to that is I don't know." |
| US shale | US shale |
| The halving of the oil price is "on the back of just a few percent of oversupply, and it shows how inelastic the whole system is, and simply because oil is so cheap - its not as if demand is going to respond," he said. | The halving of the oil price is "on the back of just a few percent of oversupply, and it shows how inelastic the whole system is, and simply because oil is so cheap - its not as if demand is going to respond," he said. |
| He added that oil becoming cheaper would not tempt consumers to use more of it, as can happen with other products. | He added that oil becoming cheaper would not tempt consumers to use more of it, as can happen with other products. |
| "People don't drive to work twice because it's more economical to do so" than it was before, he explained. | "People don't drive to work twice because it's more economical to do so" than it was before, he explained. |
| Demand for energy, North American shale oil production, Opec policy and industry costs would help inform where oil will go in the future, he said. | Demand for energy, North American shale oil production, Opec policy and industry costs would help inform where oil will go in the future, he said. |
| Opec producers, particularly Saudi Arabia, have maintained high levels of production in an attempt to curb US shale output, which is uneconomical at lower prices. | Opec producers, particularly Saudi Arabia, have maintained high levels of production in an attempt to curb US shale output, which is uneconomical at lower prices. |
| The organisation is managing through low oil prices by keeping its debts low. The organisation's debts are about 12% of total capital, he added. | The organisation is managing through low oil prices by keeping its debts low. The organisation's debts are about 12% of total capital, he added. |
| Solar backbone | Solar backbone |
| Shell said in June it was cutting 6,500 jobs as part of cost-cutting plans following the oil price slump. | Shell said in June it was cutting 6,500 jobs as part of cost-cutting plans following the oil price slump. |
| When asked how renewable energy could affect his business, Mr van Beurden said solar power could emerge as a much bigger contributor to world energy needs. | When asked how renewable energy could affect his business, Mr van Beurden said solar power could emerge as a much bigger contributor to world energy needs. |
| "I have no hesitation to predict that in years to come solar will be the dominant backbone of our energy system, certainly of the electricity system." | "I have no hesitation to predict that in years to come solar will be the dominant backbone of our energy system, certainly of the electricity system." |
| However, during that period, the demand for energy will double, he said, leading to a "multi-decade transition," from fossil fuels being the dominant supply for energy, he says. | However, during that period, the demand for energy will double, he said, leading to a "multi-decade transition," from fossil fuels being the dominant supply for energy, he says. |
| He also said his reaction to any exit from the EU by the UK would be "one of disappointment" as the firm has a heritage in Britain. | He also said his reaction to any exit from the EU by the UK would be "one of disappointment" as the firm has a heritage in Britain. |