Low oil prices increase the number of global available assets for development through investments, Shaikh Nawaf S. Al-Sabah, chief executive officer of Kuwait Foreign Petroleum Exploration Company (KUFPEC), told Anadolu Agency Wednesday.
'Our task is investing in exploration and production activities throughout the world. And this is a good time, because low oil prices have increased the number of assets available around the world,' he said.
Due to low oil prices, which declined 60 percent since June 2014, many oil assets, from wells to potential prospects, have been put on hold for exploration. However, with the right amount of investment, they can be put back on track to begin production.
'Right now, Kuwait's oil production is close to 3 million barrels per day (mbpd). And, we are trying to increase it to 4 mbpd, but we need huge investments for that,' Al-Sabah said.
'And this is the right time because capital costs have come down. Today's global oil demand of 91 mbpd is expected to increase to over 110 mbpd in the next two decades. We need to increase our oil production capacity to supply the world,' he added.
Al-Sabah said there are a lot of investment opportunities for KUFPEC due to lower oil prices and capital costs. He added there are also a lot of existing production around the world which may not continue because such production may not be viable for the producing companies in a lower oil price environment.
'That's an opportunity for us to go in and make these investments and expand production because we have the capabilities to do that,' he said.
'Right now we are working in 15 countries, stretching from Australia through Southeast Asia, on to the North Sea and into Canada. So, we are open to everywhere,' he noted.
While discussing the sustainability of low oil prices, Al-Sabah commented that their current level is the 'new normal.'
'We have to adjust ourselves to this new normal that is referred to as 'lower for longer',' he concluded.
The 'lower for longer' phrase has been widely used in the oil industry referring to lower oil prices, which have been low since June 2014 and are expected to remain low for a longer period of time, at least throughout next year.
By Ovunc Kutlu
Anadolu Agency
ovunc.kutlu@aa.com.tr