BP boss warns oil price unlikely to rise for the next five years

In an interview with American TV channel CNBC the head of BP has warned he does not see oil prices rising for the next five years, a prediction that will send more shudders across the reeling offshore sector.

Bob Dudley, group chief executive of the energy major, said: “We are not planning on an uptick in the prices. We’re going to plan on $55 to $60 … for the next five years, and we’re going to live within a strict capital diet.”

Dudley said capex for BP will be between $15bn and $17bn over the coming five years, around 30% less than spending levels were before the oil price crash in 2014.

The offshore sector, already hit hard by two lean years, is anticipating an especially harsh 2017, according to a recent survey carried on Splash. For those in the OSV sector, they will also have to contend with a record 450 vessels still to deliver, according to data released this week by online pricing vehicle VesselsValue.

Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.
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