John Hess Discusses Future of Energy on CNBC Squawk Box - ..itefinityWebApp_IN_0
Hess Corporation Logo
SEARCH

John Hess Discusses Future of Energy on CNBC Squawk Box

  • John Hess hosts Squawk Box on CNBC
  • Hess Facts
CEO John Hess predicts a slow recovery in oil prices, driven by lower capital investment and a resulting decline in production.
 
“Nothing cures a low price like a low price,” Hess said on CNBC’s Squawk Box. “The seeds have been planted for a slow recovery in oil price. Global investment in exploration/production has gone from $700 billion last year to $550 billion this year. And with the recent lag down in prices to $45 (per barrel), investment will go down even further next year.”
 
Hess also discussed the need for a long-term business strategy during a time when energy companies are experiencing reduced revenues. “I think the important thing during the downturn is our company is going to be guided, and I think the industry, by three principles,” he said.
 
“Preserve your balance sheet to have the staying power for low price. Preserve your operating capabilities. Where innovation in America has driven well costs, in our company's case in the Bakken, (from) $13 million to $5 million, we've got to keep that capability.
 
“Most of all, preserve your growth options.” Hess said. “We're in a long-term business and everybody is thinking short term.”

Latest Hess News
  • Hess Named to Dow Jones Sustainability Index North America for Seventh Consecutive Year

    Hess is one of three U.S. oil and gas producers, and the only independent, named among six companies in the Energy industry group.
    Full story
  • Hess to Participate in Barclays 2016 Global CEO Energy-Power Conference

    John Hess, Chief Executive Officer of Hess Corporation, will present at the Barclays 2016 Global CEO Energy-Power Conference in New York on Sept. 8 at 7:45 a.m. ET.
    Full story
  • Oil & Gas Investor: Bakken Defies Dour Predictions

    The cover story for the August issue of Oil & Gas Investor takes an in-depth look at the Bakken and how the play remains a stalwart for Hess and other operators, despite predictions by some that the current price environment would spell doom for oil and gas production in North Dakota.
    Full story