NEW YORK -- Robert Dudley, CEO of oil and gas giant BP, said Tuesday that the current oil price is unlikely to change significantly soon.

There are no reasons for "oil price rebound," Dudley told the annual international conference IHS Energy CERAWeek in Houston. Production continues to grow everywhere, including in Russia despite Western sanctions, while Chinese demand has stagnated and Iranian oil could soon return to the world market as part of nuclear deal between Tehran and Sextet of international mediators, Dudley noted.

"Lower for longer if the way you'd describe our view," he said.

BP will postpone some of its exploration projects while oil prices remain at the current level, Dudley noted. However, the company will continue drilling in the Gulf of Mexico, developing a major gas project in Egypt and an Alaska LNG (liquefied natural gas) project. Dudley also said he does not rule out new investment in Russia's energy sector.

All projects have to be "super competitive" amid capital reductions made in response to lower oil prices, Dudley said.*PNA/TASS

back to top