Total CEO predicts oil supply shortage by end of the decade

LONDON: The head of French oil major Total said on Wednesday the world could be heading for a big oil supply crunch following a steep cut in investments. "We are today facing a situation where we do not invest enough.

Investments dropped from $700 billion two years ago to $400 billion this year and probably less next year," Patrick Pouyanne told the Oil & Money conference in London.

"This is not enough to meet a natural decline of supply. Shale oil industry is very innovative but we still see a gap of 5-10 million barrels per day by the end of decade," he said.

The world is producing around 95 million bpd so a gap of 5-10 million would amount to between more than 5 and 10 percent of global supply.