John Hess On Shale Oil -- June 7, 2021

John Hess, CEO, talks about shale, The Williston Herald. 

“(Shale) is not going to be the swing producer, it’s not going to be the marginal supplier,” he said during the recent Citi 2021 Global Energy and Utilities Virtual Conference.

“Shale we think has entered a new phase. Where it was a growth business, now it’s a harvest business. While there’s still more oil to exploit, it’s going to be done in a much more financially disciplined manner.” 

“We don’t see peak oil until let’s say 2030,” Hess said. “I know some people think maybe it’s 2025, but the point is, you know, we still see demand for oil being pretty robust going out, even with the ESG and government pressures that are out there on climate change. Oil and gas is still a strategic industry, not only for the United States but for the world to get the economy back on its feet.”

“Ultimately, the most rigs we would ever be at in the Bakken would be four,” he added. “So let’s assume that prices would hold strongly again through 2022, we’d probably look at that fourth rig at the back end of 2022.”

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