Publicly traded U.S. oil and gas companies are unlikely to increase spending or output significantly in 2022, as they keep a promise to focus on shareholder returns, Coterra Energy CEO Tom Jorden said on Jan. 6.
Jorden said he was bullish on oil and natural gas prices, but his company would concentrate on shareholder returns, including an ordinary and variable dividend. He said Coterra is also looking closely at share buybacks.
U.S. oil prices were close to $80/bbl on Jan. 6, up about 58% compared with last year as demand picks up in response to the economic recovery from the pandemic.
“I think the market is bullish on energy,” Jorden told a Goldman Sachs energy conference.
Find out more about U.S. tight oil’s uncharacteristic response to rising prices in Hart Energy’s Shale 2022 report.
Jorden said Coterra was experiencing some inflationary pressures, including from labor and supplies such as fuel. It anticipates mid to high single-digit cost increases this year.
With positions in the Permian Basin, Marcellus Shale and Anadarko Basin, Coterra also plans to bring on its first all-electric hydraulic fracturing operation with service provider Halliburton. The equipment, which was tested last year, will be connected to the electric grid.
Recommended Reading
E&P Highlights: Sep. 2, 2024
2024-09-03 - Here's a roundup of the latest E&P headlines, with Valeura increasing production at their Nong Yao C development and Oceaneering securing several contracts in the U.K. North Sea.
Breakthroughs in the Energy Industry’s Contact Sport, Geophysics
2024-09-05 - At the 2024 IMAGE Conference, Shell’s Bill Langin showcased how industry advances in seismic technology has unlocked key areas in the Gulf of Mexico.
Interoil to Boost Production in Ecopetrol Fields
2024-09-03 - Interoil will reopen shut-in wells at three onshore fields, which are under contract by Ecopetrol.
Chevron Boosts Oil, NatGas Recovery in Gulf of Mexico
2024-09-03 - Chevron’s Jack/St. Malo and Tahiti facilities have produced 400 MMboe and 500 MMboe, respectively.
CNOOC Makes Ultra-deepwater Discovery in the Pearl River Mouth Basin
2024-09-11 - CNOOC drilled a natural gas well in the ultra-deepwater area of the Liwan 4-1 structure in the Pearl River Mouth Basin. The well marks the first major breakthrough in China’s ultra-deepwater carbonate exploration.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.