"With this low price I guarantee you we will not be able to invest and there will be a shortage of supply in the future."
OPEC secretary-general Abdalla el-Badri told the Oil & Money conference in London on Tuesday that the recent sharp fall in world oil prices and the ongoing global financial crisis were likely to deter investment in new oil projects, paving the way for a shortage in future supply.
"Clearly this is a turbulent time for the petroleum industry as a whole, given the widespread economic uncertainty and destruction of demand that we are currently witnessing."
The current economic slowdown will have a 'minimal' impact on Saudi Aramco's upstream oil and gas projects but borrowing to fund downstream mega-projects by the Saudi oil giant and its joint venture partners will be a challenge, Saudi Aramco vice president for refining and marketing Khalid Buainain was quoted as saying Tuesday.
Updated: October 28, 2008
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