On Thursday 23 April 2020, President of IPT Energy Center (IPTEC) and President of the BBA Energy and Water Committee, Dr. Toni Issa, participated along with other experts in the oil and gas field in an interview by “Hiwar Beirut” radio program on RLL (Radio Liban Libre), hosted by Ms. Rima Khaddaj Hmadeh, and produced by Mr. Freddy Saba.
The topic of the program was about “The implications of oil price decrease on financial and economic situation, and its effect on oil & gas exploration and production in Lebanon”.
Concerning the oil price decrease worldwide and how it reflects on the key players in Lebanon, Dr. Issa stated that a decrease in the international price should have been reflected in Lebanon. However, we will not feel the big drop as the government set a floor to the price of gasoline, maintaining the difference as customs and VAT fees. This does not apply to diesel, which local prices are following the international price drop, expected to decline further.
As for the reasons behind this sudden drop worldwide, Dr. Issa stated that the price of fuel has been largely affected by the high drop in demand due to the Coronavirus pandemic. What makes today's backdrop exceptional is the halt in demand coupled with an existing surplus in supply simultaneously.
As for the oil exploration project, Dr. Issa explained that we can't consider Lebanon an oil-producing country just yet. The low prices in oil today should not take a big toll on the national project of exploration today, as the process will take several years and prices go through cycles.
To know more, listen to the interview.
* In the Media: Lebanon Debate - RLL - Akhbar Lyawm