LONDON: The US shale industry will see another wave of investment as producers are betting strongly against a fall in oil prices, the chief executive of Total , Patrick Pouyanne, said on Wednesday.
Pouyanne, speaking at the Oil & Money conference in London, said he expected global oil demand to grow strongly again this year, by up to 1.6 million barrels per day (bpd).
“Our US colleagues are hedging like mad at $56 a barrel so we will see another wave of investment in US shale, no doubt about it,” Pouyanne said.
A sharp fall in investment since oil prices collapsed in 2014 has led to a drop in development of new projects, which could spark an oil supply shortage after 2020, Pouyanne said.
Pouyanne said the rate of final investment decisions (FIDs) in exploration and production had shrunk too much since 2015.
“The number of FIDs from 2010-2014 averaged 35 FIDs per year ... to add potentially 2.5 million bpd,” he said.
“Since 2015, it’s 12 per year ... to add 1 million bpd that’s probably not enough. Post-2020, we will face an issue with these lower numbers of FIDs ... it takes time to bring new capacity to production.”
He later said Total expects to give a green light by the year-end for the development of the Libra offshore field in Brazil, which will produce up to 150,000 bpd.
On the OPEC side, the oil chief sees Russia and Saudi Arabia extending production cuts.
The Organization of the Petroleum Exporting Countries and several non-OPEC producers agreed late last year on a six-month output-cutting deal from January to tackle a global glut. The deal has been extended until March 2018.
A visit by the Saudi king to Moscow recently “is a clear signal (that) it is in the interest of both countries to support the market ... I will not be surprised to see the extension,” Pouyanne said.
US shale oil industry to see wave of investment, Total chief says
US shale oil industry to see wave of investment, Total chief says
Saudi POS spending jumps 28% in final week of Jan: SAMA
RIYADH: Saudi Arabia’s point-of-sale spending climbed sharply in the final week of January, rising nearly 28 percent from the previous week as consumer outlays increased across almost all sectors.
POS transactions reached SR16 billion ($4.27 billion) in the week ending Jan. 31, up 27.8 percent week on week, according to the Saudi Central Bank. Transaction volumes rose 16.5 percent to 248.8 million, reflecting stronger retail and service activity.
Spending on jewelry saw the biggest uptick at 55.5 percent to SR613.69 million, followed by laundry services which saw a 44.4 percent increase to SR62.83 million.
Expenditure on personal care rose 29.1 percent, while outlays on books and stationery increased 5.1 percent. Hotel spending climbed 7.4 percent to SR377.1 million.
Further gains were recorded across other categories. Spending in pharmacies and medical supplies rose 33.4 percent to SR259.19 million, while medical services increased 13.7 percent to SR515.44 million.
Food and beverage spending surged 38.6 percent to SR2.6 billion, accounting for the largest share of total POS value. Restaurants and cafes followed with a 20.4 percent increase to SR1.81 billion. Apparel and clothing spending rose 35.4 percent to SR1.33 billion, representing the third-largest share during the week.
The Kingdom’s key urban centers mirrored the national surge. Riyadh, which accounted for the largest share of total POS spending, saw a 22 percent rise to SR5.44 billion from SR4.46 billion the previous week. The number of transactions in the capital reached 78.6 million, up 13.8 percent week on week.
In Jeddah, transaction values increased 23.7 percent to SR2.16 billion, while Dammam reported a 22.2 percent rise to SR783.06 million.
POS data, tracked weekly by SAMA, provides an indicator of consumer spending trends and the ongoing growth of digital payments in Saudi Arabia.
The data also highlights the expanding reach of POS infrastructure, extending beyond major retail hubs to smaller cities and service sectors, supporting broader digital inclusion initiatives.
The growth of digital payment technologies aligns with Saudi Arabia’s Vision 2030 objectives, promoting electronic transactions and contributing to the Kingdom’s broader digital economy.
