The CEO of oil and gas production company EnQuest has told CNBC that spending in the industry has fallen during the current downturn more than any previous cycle, which could have an impact on prices in the future.
Speaking to CNBC at the World Economic Forum in Davos, Amjad Bseisu said that he was seeing more stability in the price of oil and saw “slightly more upside than downside” in the months ahead.
However, on a more macro level, he suggested capacity could be stretched after a period of a spending squeeze for major oil firms.
“The actual capital spending in the industry has declined in this cycle more than any other cycle. We’ve seen, according to the HIS, almost two trillion dollars now and last year we were about a trillion – almost two trillion – over the last … From 2014 to 2019 five year cycle and that will have a significant impact on the availability of additional capacity in the future,” he said.