In oil products trade India must be in top 5,Royal Dutch Shell
In oil products trade India must be in top 5,Royal Dutch Shell
World consumes about 18% of its energy in form of electricity.Means that there is a large % of energy consumed in form of fossil fuels,oil,gas & coal. But in future we see that mix continuing to change.Oil will not disappear,its demand will peak then will gradually fall.Much later Gas will also peak.But energy will grow & its fastest-growing part will be electricity. Oil price will settle between $30 & $130.Presently it is at mid-point of range
The way Shell has decarbonised its portfolio over the past few years, are we to assume that you feel the age of oil may be coming to an end?
If you look at the energy mix at the moment from a demand and consumption perspective, currently the world consumes about 18% of its energy in the form of electricity. That means that there is still a very large percentage of energy consumed in the form of fossil fuels, oil, gas and coal. But if you look into the future we see that mix continuing to change. Does it mean that oil will disappear? No. It won’t. Oil will peak in demand and it will gradually slow down. Gas will at some point of time perhaps also peak. But I think that will be, if it happens, much later. But the key thing is the energy just will grow and the fastest-growing part of it is going to be electricity. That’s what we believe. Where do you think crude will eventually settle?
Oil price will settle somewhere between $30 and $130. And it will probably test the barriers at both ends. The oil price that we are seeing at the moment is not a bad oil price. It is probably sort of a mid-point of a range that we will see. And again, the real dynamics of supply and demand--on top of that superimposed the dynamics of sentiment--will actually create the boundaries. And you know for our company every $10 swing in oil price movement is about $6 billion in cash every year. So if it can hover between $40 a barrel or $50 maybe, you can imagine how much variation we have in our cash flows. Challenge is, how do I move away or how do I build another business that is not oil price sensitive but is much more focused on the fundamentals of the economy like petrochemicals, like power and natural gas, which has a degree of detachment already from oil prices.
Ref. : https://economictimes.indiatimes.com/industry/energy/oil-gas/india-needs-to-be-in-top-5-in-our-oil-products-business-ben-van-beurden-ceo-royal-dutch-shell/articleshow/63164309.cms Dated: Mar'05,2018.
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