Descalzi: Eni Is Keeping Balance by Lowering Costs

Descalzi: Eni Is Keeping Balance by Lowering Costs

In his interview with Bloomberg, CEO of Italy’s energy giant Eni, Claudio Descalzi said that the company is keeping balance by lowering costs to the level of $20 per barrel. As the company is not able to control the global oil price it should try controlling the costs, which have dropped by between 25% and 30% in comparison to 60%-70% decline in prices.

Descalzi adds that the key to low cost is the assets. Eni owns many assets in fields like Egypt, Congo, and Mozambique, thus the company should pay special attention to its costs and efficiency. He further noted that Egypt is about to be self-sufficient and able to explore on its own, which may mean that Cairo would need to work with Israel, Cyprus, and Libya.

Commenting on the Organization of the Petroleum Exporting Countries (OPEC), Descalzi said that OPEC is playing the role of the central bank, however, he believes that this may change as the market is rebalancing itself. He added that the industry needs a regulator to control remaining capacities and to maintain prices that are suitable for producers and consumers.

Descalzi further acknowledged that the world needs to reduce the usage of fossil fuel, coal, oil and gas, whereas in 2008 only Europe urges for the reduction of fossil fuel usage, while representing only 10% of worldwide emissions.

Eni’s CEO added that the company replaces the internal usage of gas with solar energy starting a renewable program in their sites as a way to help reduce carbon and reduce disasters caused by the usage of coal and wood in cooking.

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Sarah Samir 3515 Posts

Sarah has been writing in the oil and gas field for 8 years. She has a Bachelor Degree in English Literature. She has three years of experience in the banking sector.

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