Vaal Energy CEO: Industry investment is seriously insufficient, supply and demand are expected to stabilize next year, oil prices may have difficulty breaking the $60 "support level"

Norwegian oil and gas company Var Energi ASA expects that the outlook for oil supply and demand will stabilize next year, and oil prices will not fall significantly below $60 per barrel. The company's CEO, Nick Walker, said on Tuesday, "There may be a brief oversupply in the short term, but looking ahead to next year, I believe supply and demand balance will gradually recover." "Oil will continue to be a necessary energy source for a long time to come, and the current level of investment in the industry is severely inadequate." Industry observers, including the International Energy Agency (IEA) based in Paris, have been predicting a significant increase in oil supply for over a year. They believe that the additional crude oil production from OPEC and its allies (OPEC+) as well as non-OPEC countries will surpass the slowing demand growth. Crude oil futures are currently heading for a third consecutive month of decline, and top traders are preparing for further oil price drops. Walker pointed out that a drop in oil prices will reduce industry investments and ultimately lead to a slowdown in production growth. He added, "It seems that there is support around $60 per barrel, and the price will not fall below this level regardless of how much supply increases." Var Energi has already brought several oil fields online this year, including the Johan Castberg field in the Barents Sea, and the Balder X field launched in June. The production from these two fields will push the company's daily production in the fourth quarter to around 430,000 barrels of oil equivalent. Walker stated that in order to maintain the current production levels by the end of the decade, the company plans to approve a total of 10 new projects by the end of the year, with 4 projects already approved, all with breakeven points below $35 per barrel. The oil and gas company's third-quarter EBIT increased to $1.07 billion, exceeding analysts' expectations. Var Energi plans to distribute a total of $1.2 billion in dividends between this year and 2026.