John Hess Discusses Future of Energy on CNBC Squawk Box
Hess Corporation Logo header
SEARCH

John Hess Discusses Future of Energy on CNBC Squawk Box

  • John Hess hosts Squawk Box on CNBC
  • Hess Facts
10.22.2015
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.”

Related News
  • Hess Wins 2018 Platts Global Energy Award for ‘Remarkable Execution Skills’ on Stampede Project

    Hess won the 2018 Platts Global Energy Award for Construction Project of the Year for its Stampede project, a deepwater oil and gas development in the Gulf of Mexico. Judges said the project showcased the company’s “remarkable execution skills” and described Stampede as a “sound investment” that positions Hess for continued success.
    Full story
  • Hess to Host Investor Day

    Hess Corporation will hold an Investor Day on December 12, 2018 at 1:00 p.m. CT in Houston, TX. The meeting will feature presentations by CEO John Hess and other members of the Hess leadership team.
    Full story
  • Hess Announces Regular Quarterly Dividend On Common Stock

    The Board of Directors of Hess Corporation today declared a regular quarterly dividend of 25 cents per share payable on the Common Stock of the Corporation on December 31, 2018 to holders of record at the close of business on December 17, 2018.
    Full story