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.”
Hess also said U.S. shale producers will be the real casualty and noted the broader implications. “Shale is a strategic engine of the United States with a significant impact on jobs, national security, and, as we’ve all seen, on the stock market,” he said.
Asked about the impact on Hess Corporation, Hess said, “Our company is in a very strong position to weather the storm. First of all, we have 80% of our oil hedged for this year at $55 WTI and $60 Brent. Secondly, we're going to be making an announcement soon that has a major capex reduction planned... In addition, what makes us different than most of the shale companies in the United States is our diversified portfolio... So our goal right now is to preserve cash, to live to fight another day, and protect the great investment opportunity we have in Guyana.”
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