Total Sees $100 Oil Coming
Big oil starts to understand that high oil prices are their most mortal enemy as they are the fertilizer to alternatives. And with alternatives, I mean everything that’s different than oil or potentially reduces consumption. Methane-based mobility is such a thing. It has been around for many decades and is safe and mature. But people don’t switch their fuel just because its 15% cheaper. They will – however – give it a real hard look when methane is less than half the price of gasoline or diesel. Never mind the green properties of methane.
Total SA is among a growing chorus that sees $100 oil on the horizon. But the French energy giant isn’t thrilled about it. Chief Executive Officer Patrick Pouyanne sees supportive elements, such as looming sanctions on Iran and disruptions in Venezuela, that are stripping supply from the market and pushing prices back into triple digits for the first time seen since 2014, he said in a Bloomberg television interview.
