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.
