Total CEO: US Shale Oil Would Shut Down if Oil Fell to $50/Bbl
06/14/2012| 08:45am US/Eastern
By James Herron
(Adds more detailed comment.)
VIENNA--If the price of oil were to fall to $50 a barrel amid an economic crisis, U.S. shale oil production would no longer be profitable and fields would have no choice but to shut down, said Total SA (TOT) Chief Executive Christophe de Margerie Thursday.
Total is now planning its long-term oil projects to generate an acceptable return at $100 a barrel, Mr. de Margerie said at the Organization of Petroleum Exporting Countries International Seminar in Vienna.
If the oil price were to fall below $100 a barrel into the long term, Total would have to reconsider some of these projects, he said.
Shorter-term projects are required to make an acceptable return at $80 per barrel, he said.
Write to James Herron at email@example.com