The outlook for the energy industry is positive, some might say, given high commodity prices, growing demand, and a lack of alternatives to oil as the dominant transportation fuel. But it is positive only if having a short-term perspective, Ali Al-Naimi, minister of petroleum and mineral resources for Saudi Arabia, told attendees at the Cambridge Energy Research Associates conference in Houston last month. "A healthy long-term market is one where demand and supply are in balance and there is sufficient spare capacity to ensure the system can handle unexpected surges in demand or disruptions to supply smoothly without sharp price spikes. In my opinion, current tight capacity conditions are not conducive to this outcome." The question facing the oil industry today is whether a balanced market-good fundamentals for both the energy industry and consumers-can be achieved. "I'm convinced the answer is yes, because the two go hand-in-hand. We need each other. I believe the future of our industry is inextricably tied to mankind's aspirations for a better way of life. Without this, our industry stagnates." Better data is crucial, he added, as the industry often commits large amounts of capital based on inaccurate or missing demand information. Environmental matters should be addressed with balance as well, he said. "We should not impoverish people in the name of a cleaner environment. We must always strive to achieve our goals in a manner good for both the environment and the economic well-being of the world's population. "Lowering living standards or limiting people's ability to rise out of poverty in order to improve the environment trades one potential health hazard for another."
Recommended Reading
CEO: Continental Adds Midland Basin Acreage, Explores Woodford, Barnett
2024-04-11 - Continental Resources is adding leases in Midland and Ector counties, Texas, as the private E&P hunts for drilling locations to explore. Continental is also testing deeper Barnett and Woodford intervals across its Permian footprint, CEO Doug Lawler said in an exclusive interview.
Barnett & Beyond: Marathon, Oxy, Peers Testing Deeper Permian Zones
2024-04-29 - Marathon Oil, Occidental, Continental Resources and others are reaching under the Permian’s popular benches for new drilling locations. Analysts think there are areas of the basin where the Permian’s deeper zones can compete for capital.
New Permian Math: Vital Energy and 42 Horseshoe Wells
2024-05-10 - Vital Energy anticipates making 42 double-long, horseshoe-shaped wells where straight lines would have made 84 wells. The estimated savings: $140 million.
TotalEnergies Acquires Eagle Ford Interest, Ups Texas NatGas Production
2024-04-08 - TotalEnergies’ 20% interest in the Eagle Ford’s Dorado Field will increase its natural gas production in Texas by 50 MMcf/d in 2024.
ConocoPhillips: Permian Basin a ‘Growth Engine’ for Lower 48
2024-05-15 - ConocoPhillips views the Permian Basin as a “growth engine” within its Lower 48 portfolio, the company’s Midland Basin Vice President Nick McKenna said during Hart Energy’s SUPER DUG event in Fort Worth.