Keppel Offshore, a unit of Singapore’s Keppel Corp’s chairman and chief executive officer, Choo Chiau Beng, told an oil and offshore conference in the Norwegian capital on August 30, 2007 that the global energy boom would weather the turmoil in financial markets, but warned newcomers to rig building about high entry barriers.
Choo Chiau Beng said, “The current commodity boom is because the giants China and India are waking up; 2.5 billion people are starting to get richer and can afford cars and motorbikes.
“The hiccough in financial markets will affect some demand, especially in the consumer market in the US, but it is good that more than one force is driving the global economy,” Choo said.
“This will be a healthy business even after I retire.” Choo said his experience in the industry spanned some 35 years of booms and busts and his main concern for the future was spiking oil prices.
“The oil price is now too high, but it does not appear it will go lower. For a long-term player US$45 (RM158) per barrel is better. We don’t want volatility,” he said. Oil prices are currently around US$72 (RM252) per barrel.
Keppel Offshore is a unit of Singapore’s Keppel Corp, the world’s top builder of offshore drilling rigs whose business has been spurred by high prices for oil and gas and a global scramble by oil companies to secure reserves.
