Oil major Royal Dutch Shell Plc Chief Executive Jeroen van der Veer said he expects costs in the oil and gas industry to come down but cautioned it would take time.

Van der Veer told reporters on a conference call that the rates of hiring rigs had fallen and steel costs were also down. However, a broader reduction in industry costs — which he said had doubled since 2004 — would take time to feed through.

“We do expect costs to come down .. but this does take time, typically 12-18 months in our industry,” he said.

(Reuters)