- Chevron’s CEO said America’s need for oil isn’t going away anytime soon
- Gas prices have risen to $3.67 per gallon in the past week, compared to this time last year
- Gas demand rose from 8.42 million barrels per day to 8.62 million
Chevron CEO Mike Wirth confirmed that gas-guzzling Americans will ensure oil demand grows despite market uncertainty.
At the 27th annual Milken Institute Global Conference, Wirth discussed his expectations for strong financial performance and higher oil production through the remainder of the year with “Mornings with Maria” host Maria Bartiromo.
‘The markets are relatively balanced. Demand growth is strong. Last year saw an all-time record demand. We will see demand grow again this year,” said Chevron CEO Mike Wirth.
‘The end of the oil era is therefore not yet in sight.’
On a national average, gas prices have risen to $3.67 per gallon over the past week. According to AAA, this is 14 cents higher than this time last month and 8 cents compared to this time last year.
Chevron CEO Mike Wirth confirmed that, in terms of US oil consumption and production, market uncertainty will not stop the need for gas
Gas prices rose this past week to $3.67 per gallon, which is 14 cents higher than this time last month and 8 cents from this time last year
Gas demand rose from 8.42 million barrels per day to 8.62 million barrels per day
Gas demand rose that same week, from 8.42 million barrels per day to 8.62 million barrels per day, according to data from the Energy Information Administration.
He also said that risks related to geopolitical events, such as the Red Sea, Israel-Hamas and Russia-Ukraine conflicts, “are things we need to pay attention to because they could have an impact on markets in the short term .’
“We saw some impact on our natural gas supply to Israel during the early days of the conflict,” he said.
“We now have both platforms online and are meeting all needs, not only for Israel’s domestic market, but also for Jordan and Egypt, wherever the gas is going… The risks in a situation like this are that, through a kind of escalation [or] A miscalculation could see consequences for physical supply in an area that supplies so much of the world’s oil. And that is a real concern.”
Wirth said Chevron expects to generate 10% compound annual growth in free cash flow over the next few years by bracing for this “volatility.”
He also emphasized the importance of a balance sheet that can handle these “very low prices.”
“Driven by the Permian, driven by some other shale assets in our portfolio, projects in the deepwater Gulf of Mexico, we have a number of other assets that are delivering growth,” he said.
“The combination with Hess only strengthens our cash flow further into the future, not just through the end of this decade, but well into the next decade.”
A merger between Chevron and Hess was announced last October and is expected to close next year.
The Chevron-Hess merger is expected to close within a year
Wirth told Maria that the merger is good for the company’s shareholders and for the country
“This is a good deal for the shareholders of both companies, it is a good deal for the sector, it is a good deal for the country of Guyana,” Wirth told Bartiromo at the Global Conference.
“We are confident that the deal will be completed.”
Wirth said the corporate culture at Hess, which “values safety, integrity and protection of the environment,” aligns directly with his company’s goals.
He also mentioned that while Chevron has a strong business presence in the Gulf of Mexico, Hess also has a presence in North Dakota.
“The combination will create a leading energy company that will be good for our country,” Wirth said.