World Oil
(WO) – During a discussion titled, “Energy security in a volatile world: The importance of markets” at CERAWeek by S&P Global in Houston, Texas, Hess Corp. CEO and namesake John Hess made an impassioned call to refill the U.S. Strategic Petroleum Reserve.
Sitting down with S&P Global Sr. VP of Geopolitical and International Affairs Carlos Pascual and Xcoal Energy & Resources CEO Ernie Thrasher, Hess encouraged the U.S. to refill its oil reserves faster than the 3-MMbbl-per-month rate that the White House is currently buying. The CEO urged the U.S. to avoid having “all eggs in one basket.” The government is “asleep at the wheel,” as Hess put it, putting America’s energy leadership and security in jeopardy.
When asked why the market has been stable and resilient, Hess again pointed to the U.S. as the world’s largest oil and gas producer. Fossil fuels, he said, will be essential for meeting rising demand and increasing energy security.
Hess also called out new production opportunities in Guyana (roughly 200,000 bopd), Brazil (roughly 200,000 bpd) and Canada (roughly 100,000 bpd). Oil demand is up 2.3 MMbpd since last year, and demand will sit at around 1.5 MMbpd, Hess predicts.
Regarding the Biden administration’s pause on LNG exports, Hess said that you “can’t contain the world’s desire for energy.” Gas will be needed to replace coal in the energy transition, and policy must reflect future power needs.
Lead image (Credit: World Oil)
