The head of the US oil company ExxonMobil, Rex Tillerson told the Minister of Energy of Saudi Arabia the expectations of oil shortage in the world market are exaggerated and that it is not necessary to wait for that in the next 3-5 years, as the extraction of shale in the United States is adapted to the effects of low commodity prices and should resume growth.
The statement by Tillerson, who should resign until March 2017, on the stability of the US oil sector comes amid refusal of Saudi Arabia of its previous strategy of displacement of producers with high production costs from the market and increase in the supply of cheap raw materials from its own fields.
Tillerson said the ability of US shale oil producers to cut costs and still generate profit from production in some wells even at an oil price of $ 40 per barrel proves that the United States has become a stabilizing producer able to respond quickly to any shortage of raw materials in the world market.
“I do not quite agree with those who believe that we are on the edge of the abyss. I think it’s because we confirmed the effectiveness of operation of a very large resource base in North America … which is a huge reserve cushion in the system,” said Tillerson at the Oil & Money conference in London. “It does not require such costs, as mega projects, and it can be put into operation much earlier than projects that take 3-4 years,” he said.
“Never doubt the ingenuity and resilience of our industry,” he added.
