Former chief executive of BP, Lord Browne, said oil companies will have to adapt their business models to new oil prices.
He also placed a greater emphasis on reducing carbon dioxide emissions in order to survive.
In a speech to the City earlier this week, Lord Browne said oil majors must “look at their balance sheets” and decide how best to generate value.
He said: “That is already happening by way of short-term market forces, as costs of production come down and marginal activity is stopped. But long-term structural changes will be needed.”
His comments were made at an event hosted by law firm Pinsent Masons.
Lord Browne also urged oil companies to pay a bigger role in the discussion over climate change.
He said: “It really is up to businesses to take the lead, to learn from the mistakes of the past, and to work with the rest of society towards a common future.”
Last week Lord Browne – who was recently appointed to the UK board of Chinese telecommunications giant Huawei Technology – called on ministers to scrap a supplementary tax on North Sea oil and gas revenus.
He warned that while the North Sea was still producing plenty of oil and gas, the price decline meant “we are now seeing the late evening Of the North Sea”.
Recommended for you
