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 Announces Significant Reduction to 2020 Capital and Exploratory Budget

    Hess Corporation today announced a revised $2.2 billion capital and exploratory budget for 2020, an $800 million reduction from the previous budget of $3.0 billion. The company also announced a new $1.0 billion three year term loan agreement. These actions further strengthen the company’s cash position and financial liquidity in response to the sharp decline in oil prices.
    Full story
  • John Hess Discusses Oil Price Collapse, Company’s Unique Strengths on CNBC’s Fast Money

    CEO John Hess addressed the far-reaching impact of the oil price war on CNBC’s Fast Money on March 12, saying: “The economic problem we're facing today is a lot more than oil, and the oil price crash could be a catalyst that propels the world into an economic recession.”
    Full story
  • Hess Corporation to Give $12.5 Million Gift to the Salk Institute to Accelerate Development of Plant-Based Carbon Capture and Storage

    Salk’s Harnessing Plants Initiative (HPI) will receive a $12.5 million gift from Hess Corporation to advance two projects to enhance plants’ natural ability to store carbon and mitigate the effects of climate change: the CRoPS program and the Coastal Plant Restoration program. These projects build on the Salk discovery of a crucial gene that will help the team develop plants with larger root systems capable of absorbing and storing potentially billions of tons of carbon per year from the atmosphere.
    Full story