KUALA LUMPUR, June 8 - Royal Dutch Shell (RDSa.L) CEO Jeroen van der Veer said on Monday looking at current poor margins, the world has more oil refining capacity than needed.
"It's a real cyclical industry. If you look at margins there's more refining capacity than one needs," he told reporters at a conference in the Malaysian capital.
"Everyone has to decide what they can do, we prefer to refine more heavy crude, so that when refining margins are depressed, we can still make a bit of living out of it."
But he also said that the next oil price surge may already be in the works.
"Investments today have a lead time of about four to five years. The system is slow to react. The next price spike may already be in the making," he earlier said in a keynote address to the Asia Oil and Gas Conference.
"It's a real cyclical industry. If you look at margins there's more refining capacity than one needs," he told reporters at a conference in the Malaysian capital.
"Everyone has to decide what they can do, we prefer to refine more heavy crude, so that when refining margins are depressed, we can still make a bit of living out of it."
But he also said that the next oil price surge may already be in the works.
"Investments today have a lead time of about four to five years. The system is slow to react. The next price spike may already be in the making," he earlier said in a keynote address to the Asia Oil and Gas Conference.
