Cheaper oil is here to stay, and energy companies need to adjust to that reality, British Petroleum's CEO said on Tuesday.
"I do think the industry needs to prepare for lower for longer," Bob Dudley said from the IHS CERAWeek energy conference in Houston.
Despite a slight recovery in recent sessions, global crude prices sit 40 percent lower than a year ago. The commodity lost ground again Tuesday, as West Texas Intermediate futures settled nearly 2 percent lower at $55.26 per barrel.
For Dudley, prices could linger at these levels for "several years." He believes U.S. production will continue to increase even as oil companies reduce the number of active rigs.