Below is the quote from Amit Bhandari
“By keeping production high, they (OPEC) can push down prices, which will drive away new investments in oil and gas production, and eventually keep future oil and gas production down in the long term,” said Amit Bhandari, fellow at Mumbai-based foreign policy think tank Gateway House.
“It is a continuation of a trend that has already started with global hydrocarbon majors such as ExxonMobil, BP, Shell, ConocoPhillips, Gazprom, among others, cutting down spending on exploration,” he said.
Though low prices in the short-term are welcome, there is a flip side too for oil producers like Cairn India, which reported a 24 percent drop in net profit for the first quarter ended June, caused by the fall in crude prices.
“Oil and gas fields across the world, and the companies which own them, have lost value and can be bought cheap because of low oil prices,” Bhandari said.
“Indian companies need to actively pursue this path and focus on acquiring oil fields and oil companies abroad in order to secure a stable and predictable supply of oil in the medium- and long-term as well,” he added.
CLICK HERE TO CONTINUE READING THE FULL ARTICLE ON BUSINESS STANDARD
The quote also appeared in a number of other publications, including First Post, Oregon Telegraph, Asia Pacific News, Atlantic City News, Paris Guardian, and Russia News.