Latest news with #SquawkBoxAsia
CNBC
4 days ago
- Business
- CNBC
$50 the "sweet spot" to keep energy investments flowing, says Petronas CEO
Muhammad Taufik, President & Group CEO of Petronas, shares the company's long-term goals and outlook for oil markets amid the conflict in the Middle East. He joins 'Squawk Box Asia' on the sidelines of the 2025 Energy Asia in Kuala Lumpur.
New Straits Times
4 days ago
- Business
- New Straits Times
Petronas CEO: US$50 oil price is 'sweet spot' to sustain global energy investment
KUALA LUMPUR: The global oil industry needs prices to remain around US$50 per barrel to ensure sustained energy investment and avoid future supply shocks, said Petroliam Nasional Bhd (Petronas). President and group chief executive officer Tengku Tan Sri Muhammad Taufik, said US$50 remains the industry's key break-even level, a "sweet spot" that enables continued investment while balancing affordability and supply security. "When we faced the first challenge not too long ago, there was a call to be fit at US$50," he said in an interview with CNBC's Squawk Box Asia aired today. "Given where prices plumbed the depths of the lower US$60s before this conflict, I think that rallying call may still be relevant. "A break-even barrel of around US$50 keeps the industry afloat. There's that sweet spot, a fair way that keeps energy investments coming," he added. Tengku Muhammad Taufik noted that underinvestment in energy infrastructure, if allowed to recur, could have wide-ranging consequences for global economic stability. He pointed to the aftermath of the Covid-19 pandemic and the early phase of the energy transition as cautionary examples, where lagging investments led to price swings and exposed vulnerabilities in global supply systems. "We cannot face another period of serious under-investment. That is going to cause us to go through another roller coaster, detrimental to world growth, detrimental to economic prosperity, and I think, threatens any pursuit of sustainability." Tengku Muhammad Taufik said the 2022 energy crisis following Russia's invasion of Ukraine served as a wake-up call about the consequences of supply imbalances and reiterated the need for long-term planning. "The push for a more deliberate move to a decarbonised system was really enhanced at that point in time. But we had to face harsh realities," he said. "If we are unprepared for crisis and don't have proper supply, we risk underestimating the possibility of creating another full-blown energy crisis." While acknowledging that the global energy transition is necessary, the Petronas chief said pragmatism is essential, especially in Asia where fossil fuels still dominate the energy mix. "Seventy to 80 per cent of Asia's energy mix still relies on fossil fuels. We can't depart from that immediately," he said. "But can we make that mix lower-emission? Absolutely." Tengku Muhammad Taufik's comments come as Malaysia and other Asean nations grapple with surging energy demand, driven by rapid industrialisation, population growth and the rise of technologies such as artificial intelligence. He noted that Malaysia's electricity demand alone is growing at more than six per cent annually, a trend that underscores the urgent need for reliable and scalable energy solutions. To meet these demands, he emphasised the need to sustain investment in traditional hydrocarbon assets, while simultaneously accelerating capital deployment into lower-emission technologies and cleaner energy solutions. Strategic partnerships, he said, will be critical to advancing this dual-track strategy. "We've got to deliver energy and we've got to deliver it cleanly. Affordability and access are still major issues in our region," he said.
New Straits Times
5 days ago
- Business
- New Straits Times
Leaders wary of predicting oil prices
KUALA LUMPUR: Some chief executives of top energy companies, participating at a global energy conference here, are not about to make firm predictions on oil prices in light of Israel's attack on Iran. They said it was still too early to say what impact the fighting between Israel and Iran would pose on energy supplies. Participants at the three-day conference till Wednesday, were told that a staggering US$17.4 trillion investments were needed for the oil industry by 2050. Malaysia's national oil company Petronas, meanwhile, said heightened tensions around the Strait of Hormuz - a vital channel transporting 18 million to 19 million barrels of oil daily or about 20 per cent of global supply - had pushed oil prices higher in recent days. Petronas president and group chief executive officer Tengku Tan Sri Muhammad Taufik said the global energy system remains under pressure from retaliatory tariffs and geopolitical shocks. "This is despite some viewing the current surge in oil prices as the most significant since the 2022 energy crisis," he said in his opening address at Energy Asia 2025 conference. "A global energy system already strained by the natural evolution of civilisation is now truly in a precarious state, even though the actual impact of these events has yet to be fully measured." He said the 2022 energy crisis in Europe should have served as a wake-up call on how vulnerable the world's energy supply is to geopolitical shocks and climate risks. Tengku Muhammad Taufik also pointed to surging electricity demand, driven by the rapid expansion of artificial intelligence, especially in the data centre sector. "Electricity demand from data centres is projected to rise to 945 terawatt-hours by 2030, up from 415 terawatt-hours in 2024, more than double in just six years. "This situation demands urgent adaptation of the energy system and fresh infrastructure investment to meet growing demand. "Energy is a driver of human development. No technological revolution can occur without sufficient, efficient and accessible energy," he said. Meanwhile, speaking at the conference on Monday,Baker Hughes president and chief executive officer Lorenzo Simonelli told CNBC's "Squawk Box Asia" that "my experience has been, never try and predict what the price of oil is going to be, because there's one sure thing: You're going to be wrong." Simonelli said the last 96 hours "have been very fluid," and expressed hope that there would be a de-escalation in tensions in the region. "As we go forward, we'll obviously monitor the situation like everybody else is. It is moving very quickly, and we're going to anticipate the aspect of what's next," he added, saying that the company will take a wait-and-see approach for its projects. At the same conference, Meg O'Neill, CEO of Australian oil and gas giant Woodside Energy, told CNBC that the company is monitoring the impact of the conflict on markets around the world. She highlighted that forward prices were already experiencing "very significant" effects in light of the events of the past four days. If supplies through the Strait of Hormuz are affected, "that would have even more significant effects on prices, as customers around the world would be scrambling to meet their own energy needs," she added. Reuters reported that oil prices were volatile on Monday, after surging seven per cent on Friday, as renewed strikes by Israel and Iran over the weekend increased concerns that the conflict could widen across the Middle East and significantly disrupt oil exports from the region. Brent crude futures were up 33 cents, or 0.4 per cent, to US$74.56 a barrel by 0732 GMT, while US West Texas Intermediate crude futures gained 38 cents or 0.5 per cent, to US$73.36. They had surged more than US$4 a barrel earlier in the session and also fell into negative territory briefly. Speaking at the conference's ministerial plenary, Opec secretary general Haitham Al Ghais underscored the need for significant investment in the oil sector to ensure a reliable energy supply while meeting growing demand. "One of the key issues that I keep repeating, and Opec's position has been very clear upon, is investments. "Sustainability and continuous flow of investments in energy systems overall - and for us, particularly in oil - are critical," he said. He detailed that Opec forecasts US$17.4 trillion investment requirement for the oil industry by 2050, translating to about US$640 billion annually. "This investment spans the upstream, downstream, and midstream sectors, which must be viewed as an integrated value chain," he added. Despite global momentum toward renewables, Haitham highlighted that oil remains indispensable to daily life, representing 30 per cent of the global energy mix.
CNBC
6 days ago
- Business
- CNBC
Energy giants Baker Hughes, Woodside shy away from making oil forecasts as Iran-Israel conflict escalates
The CEOs of two major energy companies are monitoring the developments between Iran and Israel — but they aren't about to make firm predictions on oil prices. Both countries traded strikes over the weekend, after Israel targeted nuclear and military facilities in Iran on Friday, killing some of its top nuclear scientists and military commanders. Speaking at the Energy Asia conference in Kuala Lumpur on Monday, Lorenzo Simonelli, president and CEO of energy technology company Baker Hughes, told CNBC's "Squawk Box Asia" that "my experience has been, never try and predict what the price of oil is going to be, because there's one sure thing: You're going to be wrong." Simonelli said the last 96 hours "have been very fluid," and expressed hope that there would be a de-escalation in tensions in the region. "As we go forward, we'll obviously monitor the situation like everybody else is. It is moving very quickly, and we're going to anticipate the aspect of what's next," he added, saying that the company will take a wait-and-see approach for its projects. At the same conference, Meg O'Neill, CEO of Australian oil and gas giant Woodside Energy, likewise told CNBC that the company is monitoring the impact of the conflict on markets around the world. She highlighted that forward prices were already experiencing "very significant" effects in light of the events of the past four days. If supplies through the Strait of Hormuz are affected, "that would have even more significant effects on prices, as customers around the world would be scrambling to meet their own energy needs," she added. As of Sunday, the Strait remained open, according to an advisory from the Joint Maritime Information Center. It said, "There remains a media narrative on a potential blockade of the [Strait of Hormuz]. JMIC has no confirmed information pointing towards a blockade or closure, but will follow the situation closely." Iran was reportedly considering closing the Strait of Hormuz in response to the attacks. O'Neill said that oil and gas prices are closely linked to geopolitics, citing as examples events that date back to World War II and the oil crisis in the 1970s. Nevertheless, she would not make a firm prediction on the price of oil, saying, "there's many things we can forecast. The price of oil in five years is not something I would I would try to put a bet on." The Strait of Hormuz is a vital waterway between Iran and the United Arab Emirates. About 20% of the world's oil passes through it. It is the only sea route from the Persian Gulf to the open ocean, and the U.S. Energy Information Administration has described it as the "world's most important oil transit chokepoint."
CNBC
10-06-2025
- Business
- CNBC
China emboldened by leverage in critical minerals, says Former USTR Negotiator
Wendy Cutler, a former negotiator in the Office of the U.S. Trade Representative and Vice President of the Asia Society Policy Institute tells CNBC's Squawk Box Asia that China's hold on critical minerals gives it enormous negotiating power.
