Greg Hill Addresses Deloitte Oil & Gas Conference
Hess Corporation Logo header
SEARCH

Greg Hill Addresses Deloitte Oil & Gas Conference

  • COO Greg Hill speaks on "delivering value in a challenging upstream environment" at the Deloitte Oil and Gas Conference.
10.03.2016

Hess is relying on innovative technologies and Lean operating processes to manage through a period of "unprecedented disinvestment" in the energy industry.

Greg Hill, Hess President and COO., discussed the company's strategy and approach recently at the 2016 Deloitte Oil & Gas Conference in Houston. "The amount of disinvestment in this industry has been incredible — unprecedented. And of course, that’s going to have a lot of implications for the future," he said.

Energy companies like Hess need to balance current economic realities against future expectations and position themselves to ride out the low-price environment while remaining agile enough to respond quickly and efficiently when the market rebounds, Hill explained.

"We’ve reduced activity and have been adjusting the number of staff. But we have not done across-the-board cuts — it’s vital that we maintain our capabilities for when prices recover," Hill said.

Hess is delivering on its commitments to its stakeholders by using both capital and resources more efficiently, improving returns, and driving safety and operational integrity, he added.

The company is also using Lean methodologies to foster a culture of efficiency, innovation and continuous improvement.

Hill's comments were well aligned to the objectives of the Deloitte conference, which was held to discuss critical issues and trends shaping the future of the oil and gas industry. The conference attracted nearly 750 senior executives and board members from all sectors of the energy industry, as well as investors, academia, commercial and investment bankers, industry analysts and journalists.

"This business is resilient and resourceful and will rise to challenges. This business — which one reason I love it so much — is a business of innovation," Hill said.

Hess’ strategy is to preserve its balance sheet, capabilities and growth options in proven and emerging oil-prone plays.

Offshore, Hess has reduced turnaround times, drilling cycle times and non-productive time — down to zero in some cases. In addition to two major offshore developments that will come online in the next two years, Hess is continuing exploration offshore of the South American nation of Guyana, where the company confirmed a world-class oil discovery several months ago.

Onshore, Hess is drilling the lowest cost, highest return wells in North Dakota's Bakken. "In the space of four years in the Bakken, we have cut our well costs by two-thirds. We’ve tripled the productivity, and the complexity factor of the wells has gone up by four," he said.

Global energy consumption is projected to increase by 48 percent over the next three decades, according to projections from the U.S. Energy Information Administration (EIA).

"The world is going to need more energy resources," he continued.

Hess is looking at opportunities in both shale oil and gas and in conventional offshore. "We're bringing these opportunities into the company to provide a long-term sustainable growth for our shareholders," Hill said.

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