U.S. oil giant Exxon Mobil Corp will not cut back on investments in new crude production, despite the collapse in oil prices, the company’s regional head of exploration said on Monday.
“The lower price environment has had no impact whatsoever on our investments,” Russell Bellis, exploration director for Europe, the Middle East and North Africa said during the IP week petroleum industry meeting in London.
“We take a long-term view, and even if prices stay at these kind of levels for a number of years, it will make no impact on our investment strategy.”
Oil prices have collapsed by more than $100 a barrel since a record above $147 last July as the global economic slowdown has cut consumption.
At the same time, there have been project cancellations and delays, prompting some concern there could be a supply shortage when the world economy recovers and oil demand picks up.
Bell said there was a price that in theory could force the company to cut investments, but Exxon had always taken a long-term view.
“When prices fell to a low of $10 a barrel in 1998 we were investing way more than what we were making for a number of years — so the strategy continues.”
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