In his first visit to the United States since the Organization of the Petroleum Exporting Countries (OPEC) announced plans to cut production late last month, Secretary General Mohammad Barkindo joined Hess CEO John Hess at a Washington, D.C. forum to discuss oil market trends.
“We’re entering a new chapter for oil prices; one of upward trajectory,” Hess said during the Center for Strategic and International Studies forum. “The key question is can shale and OPEC coexist? The answer is absolutely yes. Everybody tends to talk about shale and shale is becoming the new OPEC. Not the case. Shale is short cycle. OPEC and deepwater are long cycle. We're going to need both for sustainable prices going forward.”
Technical innovations and operational efficiencies by Hess and other shale operators, spurred by the low oil price environment, have reduced costs enough to make shale operators competitive at current prices, Hess said. “I think it really shows American ingenuity and innovation at its best.”
A replay of the CSIS forum webcast is available at the link below. The discussion is preceded by a presentation on the World Oil Outlook 2016 by Dr. Jorge Leon Arellano, Energy Demand Specialist of the OPEC Research Division.
Watch the webcast