(MT Newswires) -- Ryan Lance, CEO of ConocoPhillips, reports that rising oil prices are due to a combination of recovering demand, particularly in Asia, and shortages of refined products such as petrol and diesel. OPEC+ is maintaining a supply restriction, while US production is increasing slightly, contributing to a balance in stocks.
Lance believes that oil prices will stabilise in the short term at between $70 and $90 a barrel. Unlike other companies in the sector, ConocoPhillips is not embarking on major acquisitions, but is investing in long-term projects such as the Willow project in Alaska and focusing on the LNG sector by exploiting its own liquefaction technology. The company aims to take advantage of price differentials between Europe, Asia and the Henry Hub, anticipating long-term low natural gas prices in the US.
On the question of hydrogen, Lance believes that the development of hydrogen markets, particularly green ones, will take time and that natural gas will remain essential in the meantime.
As for oil production in the US, Lance predicts moderate growth of 300,000 to 500,000 barrels per day this year. The company is maintaining an investment budget of around $11 billion and is focusing on efficiency and technology to maximise returns.
Finally, Lance expresses concern about the US LNG export pause, which is causing concern among customers and could lead to higher gas prices in the future if it is prolonged. He hopes the pause will be lifted after the elections, but acknowledges its current impact on the company's LNG projects.
