ConocoPhillips Co. Chief Economist Helen Currie joined Hart Energy’s Jessica Morales for a look at global oil markets following the unprecedented COVID-19 shock and when she believes demand will most likely recover. To monitor demand recovery, Currie shared several key indicators she has been watching.
“The key thing that we have been focused on recently is leading indicators so that we can try to get an advanced notice of is the demand recovery solid and is it going to stick? Or are we going to see more of a flattening of demand through the summer months?” she said. “Some of the specific things, for example, that we are looking at are around mobility—people getting out and moving, shopping, driving data, VMT (vehicle miles traveled), passenger travel through airports, flights and so forth. There is a lot of data out there fortunately that we and other folks can look at to try and get an idea of how solid the consumer response is to the reopenings.”
Currie also commented on the possibility of another wave of consolidation for the oil sector.
“We do see the service sector getting hit hard in this downcycle, but on the E&P side that contributes to costs falling as well,” she said. “So, that translates into some incrementally better or lower breakeven costs and I think that will help the sector along the way to recovery.”
“We think the sector has a very positive story to tell and we have a bright future ahead of us,” she later continued. “We think about our future in the context of the world has a growing economy and the population is growing and that translates into the need for a greater amount of affordable and reliable energy. We’ve seen that oil and natural gas really fills that need to a large extent. By and large, we think oil and natural gas demand will grow as we go forward.”
Jump to a topic:
- COVID-19 demand shock (0:22)
- Demand recovery outlook (2:01)
- Key indicators for recovery (3:11)
- Consolidation (4:15)
- ConocoPhillips U.S. production forecast (6:15)
- OPEC+ influence (7:44)
- Non-OPEC projects (9:10)
- Industry’s path forward (10:14)
Recommended Reading
Woodside Reports Record Q3 Production, Narrows Guidance for 2024
2024-10-17 - Australia’s Woodside Energy reported record production of 577,000 boe/d in the third quarter of 2024, an 18% increase due to the start of the Sangomar project offshore Senegal. The Aussie company has narrowed its production guidance for 2024 as a result.
Venture Global LNG Files Paperwork for IPO
2024-12-20 - Venture Global LNG filed initial paperwork for an IPO on Dec. 20, about a week after the company’s Plaquemines LNG facility started production.
Baker Hughes Wins Contracts for Woodside’s Louisiana LNG Project
2024-12-30 - Bechtel has ordered gas technology equipment from Baker Hughes for the first phase of Woodside Energy Group’s Louisiana LNG development.
BP Profit Falls On Weak Oil Prices, May Slow Share Buybacks
2024-10-30 - Despite a drop in profit due to weak oil prices, BP reported strong results from its U.S. shale segment and new momentum in the Gulf of Mexico.
Are Shale Producers Getting Credit for Reining in Spending Frenzy?
2024-12-10 - An unusual reduction in producer hedging found in a Haynes and Boone survey suggests banks are newly open to negotiating credit terms, a signal of market rewards for E&P thrift.
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.