LATIN AMERICA
This sense of pragmatism not only applies to Staatsolie ’ s production . It is also helping to redefine what the company ’ s key commodity could be in the future . Elias predicts that oil demand will peak between 2030 and 2040 before the volatile price will plummet . Thanks to the company ’ s cost-conscious approach , he is confident that Staatsolie will continue to thrive as a lowest cost quartile oil producer .
Exploring renewable energy Yet , the future of the oil sector is a murky one and so Staatsolie is keen to tap into a new commodity – renewable energy .
“ If you are in that low-cost quartile , you will be able to survive price volatility in the long term , but no matter how you see it , oil is an ending resource ,” Elias says . “ We should look beyond oil and what is it we are currently looking at ? It ’ s renewables . When we have excess cash in the coming years , we would like to take a percentage of our capital expenditure , say 5-10 %, and invest that in renewables .”
However , this is more than just a case of buying the resources and
www . energydigital . com 95