Stock Groups

U.S. oil CEOs offer opposing views on crude output growth -Breaking


© Reuters. FILE PHOTO Vicki Hollub is the President and Chief Executive Officer of Occidental Petroleum. She spoke at the 2019 Milken Institute Global Conference, Beverly Hills, California (USA), April 29, 2019. REUTERS/Lucy Nicholson/File photo

Stephanie Kelly, Arathy Smasekhar, and Sabrina Valle

HOUSTON, (Reuters) – Chiefs of two major U.S. oil corporations, Occidental Petroleum Corp. (NYSE:), and ConocoPhillips. (NYSE:) presented divergent outlooks regarding the growth in U.S. crude oil production at a Monday conference. This was as the sector recovers from the shutdowns that occurred during the initial stage of the coronavirus outbreak.

In the past few weeks oil prices reached seven-year highs. The international benchmark almost hit $90 per barrel. This is due to tight global supply and rising demand.

Ryan Lance, ConocoPhillips chief executive, told a crowd at the Argus Americas Crude Summit Houston that he believes markets will continue to be strong as long as oil prices remain high.

The record of 13,000,000 barrels per daily (bpd), reached in the late 2020s, he predicted would be eclipsed by production.

Vicki Hollub, CEO of Occidental, was less optimistic in her prediction. She predicted that the United States will likely exceed 12 million bpd sometime soon but not surpass this all-time high.

U.S. Energy Information Administration projects that crude oil production this year will average 11.8million barrels per day, and that it will reach 12.4million in 2023. Even though this average is lower than the November record of 12.97 Million bpd, it would still be an all-time high for a complete year.

Disclaimer: Fusion MediaWe remind you that this site does not contain accurate or real-time data. CFDs are stocks, futures, indexes or Forex. The prices of Forex and CFDs are not supplied by exchanges. They are instead provided by market makers. Because prices might not reflect the market, they may be incorrect. This means that prices cannot be considered indicative and are inappropriate for trading. Fusion Media does not accept any liability for trade losses you may incur due to the use of these data.

Fusion MediaFusion Media or any other person involved in the website will not be held responsible for any loss or damage resulting from reliance on this information, including charts, buy/sell signals, and data. You should be aware of all the potential risks and expenses associated with trading in the financial market. It is among the most dangerous investment types.