A packed house this morning to hear from the impressive Mr Sanyal, a BP veteran of 26 years. He was introduced by the Management Consultancies Association CEO, Alan Leaman who wryly noted that before the Election a flagship Labour policy was capping energy prices! Dev commenced by noting the decline in the oil price from $112 to $35 in two years, cumulatively wiping $2 trn off global GDP. He contrasted the undoubted low price dividend with the effect on stock markets and sovereign wealth.
A wide ranging exposition, with subsequent questions, followed in which he pointed to the inherent volatility of the commodity markets, the need for resilience and to avoid fear of uncertainty. Indeed the only certainty was that the oil price wouldn’t remain at its current level for ever! He noted that the oil price appeared no longer to be at the beck and call of world events as geo-political instability was factored into the oil price. He made clear BP’s long term capability and adaptability. He also pointed to the broader changes in the market and technology and therefore the future position of oil with the observation “the stone age did not end because we ran out of stones”.
A most interesting and thought provoking session.