KEMAMAN: The current lower oil and gas (O&G) price and its volatility would only leave a small impact on O&G players such as Handal Resources Sdn Bhd, said its Executive Director Joel Emanuel Heaney.
Heaney said that since the company’s venture into the crane servicing business after its establishment in 1988, it has experienced multiple oil price drops, including to the lowest level of US$14.77 per barrel due to the 1997-1998 financial crisis.
“We have gone through worse, and right now the price is considered better than before. In terms of existing operations, it would not affect us as regardless of what the price of oil is, as the cranes used offshore still need to be serviced,” he said.
However, he added that the lower oil price might be used as a bargaining factor for future clients.
“Other than that, as long as we are keeping up with our track record, we will be doing okay as our core fundamentals are strong,” he said.
After the crisis ended, the oil price shot up to as high as US$125.45 per barrel in March 2012 before falling as low as US$34.60 in early 2016.
Brent crude oil futures were at US$67.22 at 9.30am yesterday.
The international oil price benchmark is now at a seven-month low, having fallen by nearly 24 per cent since its year-to-date peak of US$85.83 per barrel in October.
Meanwhile, Handal Resources Chief Executive Officer, Zaini Yusuf said even though green energy is gaining traction, the O&G industry is expected to remain strong over the next 20 years.
“Green energy is relatively new and many of the countries in the world still rely on petroleum. Hence I do not foresee the O&G industry going anywhere in that period of time,” he said. –Bernama