Total warns of looming supply crunch

(FILES) A picture taken on October 24, 2007 shows Total' s headquarters at La Defense District near Paris. French oil giant Total reported on August 1, 2008, net earnings of seven billion euros for the first half of 2008, a 15-percent increase fuelled by soaring oil prices. AFP PHOTO ERIC PIERMONT

Looking ahead: Total

ERIC PIERMONT

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Anthea Pitt

 16 September 2009 08:50 GMT

French giant Total said it would boost output next year, but warned of a looming supply crunch as cost cutting in the wake of the financial crisis looks set to crimp global production capacity.



In its mid-year outlook presentation, Total said that output would increase next year after this year's dip, although it did not say how much of an increase it expected.

Total also said costs in the areas which account for most of its $18 billion investment budget, such as subsea equipment, onshore facilities construction and pipelines, would fall between 10% and 20% this year on last year's figures.

Total said cuts in oil sector investment since crude prices slid from last year's highs of more than $140 per barrel have…

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