Mining giant BHP Billiton looks to capitalize on long-term oil market recovery —its highest margin business—with “value over volume” energy strategy
Even as oil prices fight their way back to a $50 per barrel level and mining companies like Freeport McMoRan (ticker: FMX) look to exit oil and gas, miner BHP Billiton (ticker: BHP) says that it plans on oil being a pillar of its business moving forward. Declining costs and future demand have BHP’s management hopeful that oil will remain a profitable part of their business.
“While currently well supplied, underlying fundamentals suggest both oil and gas markets are improving more quickly than our minerals commodities,” said BHP Billiton President of Operations Petroleum Steve Pastor, in a company press release.
“Over the next decade, demand growth, natural field decline and the effects of industry wide investment deferrals are expected to create a significant opportunity to invest and maximize value in oil. By 2025 the world is expected to consume more than 100 million barrels of liquids per day – a third of which would come from new sources.”
collected by http://www.oilandgas360.com/bhp-billiton-oil-highest-margin-business/
Even as oil prices fight their way back to a $50 per barrel level and mining companies like Freeport McMoRan (ticker: FMX) look to exit oil and gas, miner BHP Billiton (ticker: BHP) says that it plans on oil being a pillar of its business moving forward. Declining costs and future demand have BHP’s management hopeful that oil will remain a profitable part of their business.
“While currently well supplied, underlying fundamentals suggest both oil and gas markets are improving more quickly than our minerals commodities,” said BHP Billiton President of Operations Petroleum Steve Pastor, in a company press release.
“Over the next decade, demand growth, natural field decline and the effects of industry wide investment deferrals are expected to create a significant opportunity to invest and maximize value in oil. By 2025 the world is expected to consume more than 100 million barrels of liquids per day – a third of which would come from new sources.”
collected by http://www.oilandgas360.com/bhp-billiton-oil-highest-margin-business/
