Christophe De Margerie, Chairman and CEO of Total said that the hearsays of end of Cheap oil age is incorrect because Gulf States have reserves of Cheap Oil but prevent the International Companies from reaching it due to strategies related to keep the resources to the coming generations.

De Margerie added to MIM Program in CNN that using of the
“Speculations” to describe the state of oil markets and high of oil barrel prices to 80$ indicting that the accurate description is “Future assumption” stressed that his company hope to invest in Iran and this doesn’t contradict with the embargo imposed on Tehran due to its Nuclear File.

On the Current oil price that jumped from 35$ a barrel to 80 $ during few months De Margerie said that ” I hate the word ‘Speculations’ because it doesn’t mean the acting in correct manner .. what is happening on the land are actions leaded by future assumption”.

He added that the demand depend now on the assumptions related to the future need saying that ” its correct that markets today have huge reserve and its Saturated ..But if the matter was depended on offer and short- term demand the prices were less than the current ones.

About the suppositions of oil back to 100 $ during the coming three or four years he said that its too difficult to say if the prices will remain lower than 100 $ or it will be over than that.. but the definite thing is that markets expect high prices due to having no additional power for production in short-term and this doesn’t mean the oil reserves which is big but the production power is not like this.

About the reports that indicated that cheap oil became from the past He stressed that there is cheap oil but these reserves in states prevent the International Companies from reaching it due to strategies related to keep the resources to the coming generations.

When he was asked if he was indicating to Gulf States and Saudi Arabia De Margerie said ” sure .. the cost of Extract these reserves are cheap but in the light that we as International companies can’t reach it we are forced to head to other countries reachable but in the mid of complex conditions , like Angola, Nigeria ,and Mexico Gulf , the extract will cost a lot.

He added that With operations in Myanmar, Yemen and Sudan oil giant Total is not shy when it comes to investing in high risk areas.

He called to differentiate between oil companies that their work need long –term investments and projects need long-term contracts to be developed and between the Penalties resolutions against some states like Iran .

 
He said that Oil and Gas are long –term investments and we cannot stop work in it .. this sector is too difficult … we respect countries and governments but we have work must go on it and they must understand its nature.

He added that the current problem between his company and Iran isn’t related to penalties but to the contract itself saying that if we reach to an acceptable agreement we will discuss the political part related to penalties with politicians ” behind closed doors.”

He said that the problem with Iran isn’t related to Law because there aren’t Law Contraindications in Europe prevent investment in it … there is only technical issues that may have double uses.. this make our job hard in some ways but there are no law contradictions.

 
He didn’t hide his Resentment of penalties policy saying that Oil Companies must raise their voice in this matter based on its responsibilities to wards Providing sources of energy in the world and it will be accounted if there is any shortage of these material in markets.

 syria-oil