Oil prices influenced by many events but Petronas CEO remains confident

Oil prices influenced by many events but Petronas CEO remains confident

January 25, 2018 0 By User
Petronas President and Group CEO Tan Sri Wan Zulkiflee Wan Ariffin, told Bloomberg TV the Oil & Gas industry was subjected to a series of events that coincided and are shaping the future of the industry.
He said the Opec and the non-Opec countries were on a voluntary production cut that is helping to boost up the oil price, but there are supply disruptions in other places such as Libya that also influences the oil price.
“The demand side is looking good globally and we expect this to continue in the next few years,” he said, adding that there were three specific dimensions that were influencing the oil and gas outlook.
They are supply, demand and speculation.
On the speculative side, he said that Petronas will closely monitor events that are happening in the Middle East, North Korea and other parts of the world that could impact crude oil prices, adding that in Petronas, they continue to take a conservative view and budgets are lower than what oil prices are today.
Furthermore, he said the oil giant was looking into things that are new to the company, citing the potential of being involved in renewables such as solar and other new energies.
He also said he believed the current high in oil prices would likely continue for the next few years, though he said the increase in US shale production will have an impact on prices.
Zulkiflee, who attended the World Economic Forum in Davos, told Bloomberg TV for 2018, Petronas has a three-pronged strategy that will focus more on growth.
 
“One, we are still looking at our cash; secondly, we want to expand our core business. We are a fully integrated company and I believe in this business model. We are looking at ways to extend the value chain of our business; thirdly, we are looking into things that are new to Petronas, for example, we are looking at the potential of being involved in renewables such as solar and other new energies.”
He said Petronas did a lot of housekeeping which included looking at our cash, how we deliver our projects, simplification of processes, revised our talent development, technology and very importantly, the culture of the organisation.
 
Future challenges for PETRONAS
While remaining optimistic, Tan Sri Wan Zulkiflee anticipates three major challenges that could impact the Company. 
 
The first is talent to drive the Company forward.  He said that PETRONAS is investing in talent, especially in new areas of business that the Company is considering.   
 
A second challenge would be in oil prices. Tan Sri Wan Zulkiflee said PETRONAS is familiar with the cycles in oil prices and is confident that the Company is now in a stronger position to withstand these cycles; and the third challenge is in the development of renewables against fossil fuels.