VIENNA - Oil prices should not drop under $60 a barrel if investment is to be maintained, said ENI Chief Executive Officer Paolo Scaroni on Thursday.
Similarly prices should not be above $75 if economic growth is to be sustained, he told an OPEC energy conference.
"In my view calculating a reasonable number is a balancing act," he said.
"Go too low and you get declining investment .... plus a lot of waste," he added. "Go too high and what you get is a declining economy."
"The best number is probably $60-$70," Scaroni said.
A further factor for an appropriate price was oil's role in setting the cost environment for other energy sources, Scaroni said.
"What affects oil prices affects other energy sources," he said. "Oil must be at the center of any concept of sustainable development."
"Low oil prices are the enemies to research into alternative sources."
A suitable level to price investment and bring on more supplies was also variable.
"The most expensive oil projects worldwide ... which are technologically ambitious and in challenging areas may cost as much as $80 a barrel, but the market does not necessarily need these," Scaroni told delegates.
Similarly prices should not be above $75 if economic growth is to be sustained, he told an OPEC energy conference.
"In my view calculating a reasonable number is a balancing act," he said.
"Go too low and you get declining investment .... plus a lot of waste," he added. "Go too high and what you get is a declining economy."
"The best number is probably $60-$70," Scaroni said.
A further factor for an appropriate price was oil's role in setting the cost environment for other energy sources, Scaroni said.
"What affects oil prices affects other energy sources," he said. "Oil must be at the center of any concept of sustainable development."
"Low oil prices are the enemies to research into alternative sources."
A suitable level to price investment and bring on more supplies was also variable.
"The most expensive oil projects worldwide ... which are technologically ambitious and in challenging areas may cost as much as $80 a barrel, but the market does not necessarily need these," Scaroni told delegates.
