Sunday, February 22, 2009

Shell will not reduce investments because of falling oil prices


The head of Royal Dutch Shell Yeruen Van der Veer said that the fall in oil prices will not damage the company's investment program of $ 31 billion in 2009.

«With regard to our projects, we have never done the calculation on the assumption that oil prices will be high for so long», - he said in his speech on Sunday in the Danish public television, passes Bloomberg. «Therefore, all our investments - and some of them, which we postponed - can survive the current superb price of oil».

Oil companies cut capital spending and delay projects, as oil prices fell by 54% over the past year. This was the first fall in prices on the «black gold» in relation to the past year, since 2001. Shell deferred a decision on the draft second-phase expansion of activities in the Athabasca - the oil sands of Canada in October, and reduced costs for the year 2008.

«The most expensive oil is produced from oil sands of Canada - said the Van der Veer. - For new projects in oil sands «the oil price should be higher».

Crude oil traded below $ 39 on the NYMEX on 20 February, when world markets fell on fears that the recession would deepen.


www.k2kapital.com
22.02.2009

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