John Hess, Chief Executive Officer of the Hess Corporation, believes the “real impact” of a three-year bear market and low oil prices of $40 to $50 per barrel, is reflected by worldwide oil and gas investment that is insufficient to meet demand growth and supply demands.
“The International Energy Agency (IEA) estimates that the world needs to invest about $540 billion in oil and gas globally each year to meet demand growth,” Hess said, speaking on a panel at CERAWeek by IHS Markit, held recently in Houston, Texas. “Two years ago that number was $380 billion. Last year that number was $400 billion. This year it’s about $420 billion. And the only area of growth in that was shale. So we’re not investing enough. The three years of under-investments are going to start being seen in the next several years.”
Roger Diwan, Vice President, Financial Services for IHS Markit (left); John Hess, Chief Executive Officer, Hess Corporation; Musabbeh Al Kaabi, Chief Executive Officer, Mubadala Investment Company, Petroleum and Petrochemicals; Hital Meswani, Executive Director and Member of the Board, Reliance Industries and Samir Assaf, Chief Executive, Global Banking and Markets, HSBC
Please read this article in its entirety in the June/July issue of BIC Magazine.