The head of US giant Exxon Mobil Corporation said on Tuesday that consumers should expect up to five years of volatility in oil markets due to lack of investment and the Covid-19 outbreak.
Statements from ExxonMobil president and CEO Darren Woods arrived in the Qatari capital, Doha, before announcing the company’s participation in a Qatari project to develop the world’s largest gas field.
According to Woods, there is a lot of uncertainty due to the state of the global economy.
He told the Doha Economic Forum: “There are probably three to five years in markets are somewhat restricted. The way in which this will affect prices is something that depends on demand and is difficult to predict. “
Woods noted that in addition to the lack of investment in oil resources between 2014 and 2015, the pandemic “absorbed much of the industry’s revenue.”
According to Woods, companies and governments need long-term policies, adding, “We will see a lot of volatility and market disruption if we don’t come up with more thoughtful policies.”
The Northeast Field project involves the expansion of the offshore North Field, the largest natural gas field in the world, in which Qatar is collaborating with Iran.
The project is estimated to be worth approximately $ 28 billion.
North Field contains about 10% of the world’s known natural gas reserves, according to estimates by the Qatar Energy Company. Reserves extend beneath Gulf waters to Iranian territory, but international sanctions hinder Tehran’s efforts to exploit its stake in the South Pars gas field.
Production on the project is expected to start in 2026 and will help Qatar increase its liquefied natural gas production from 77 million tons to 110 million tons per year.
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