Rosneft CEO comments rumors regarding 'death' of oil

Rumors regarding the ‘death’ of oil are highly exaggerated and it will remain the basis of the global energy sector for 20-30 years more, Chief Executive Officer of Russian oil and gas producer Rosneft Igor Sechin said at the 10th Eurasian Forum in Verona.

"I can tell you that rumors concerning the ‘death’ of oil are highly exaggerated. Oil will remain the backbone of the global fuel energy sector for 20-30 years to come and later on," the top manager said.

He noted that shale oil producers will not have positive cash flow earlier than 2020, provided that the price will be $70 a barrel.

"Historically high costs of infrastructure and considerable drilling scopes determined the specific amount of investments into shale oil development, which is one third higher than indicators of conventional oil projects. The industry will see the positive cash flow in 2020 at the earlier and provided that the oil price reaches about $70 per barrel by that time," TASS cited Sechin as saying.