Conoco CEO predicts surge in U.S. oil production to exceed 14M bbl/day followed by plateau

In his recent remarks at the CERAWeek energy conference in Houston, ConocoPhillips CEO Ryan Lance made some bold predictions about the future of U.S. crude oil production.

According to Lance, production is expected to climb to over 14 million barrels per day before leveling off later in the decade. This level is then expected to be maintained for a significant period of time, indicating a period of stability and consistency in the industry. One of the key drivers of this increase in production is the Permian Basin, which is projected to see a rise of 300,000 to 400,000 barrels per day this year alone.

This region has long been a powerhouse in the oil industry, and it continues to play a crucial role in meeting the growing demand for oil both domestically and globally. While this increase in production is certainly good news for the industry, Lance also highlighted the importance of continued efforts to reduce supply costs and increase scale. These measures are essential for ensuring the long-term health and sustainability of the industry, particularly in the face of increasing competition and evolving market dynamics.

One project that ConocoPhillips is particularly excited about is the $8 billion Willow project in Alaska's North Slope. This project is on track to start producing oil within the next 4 to 5 years, adding to the company's already impressive portfolio of assets. The successful development of projects like Willow will be crucial for maintaining ConocoPhillips' position as a leader in the industry.

In addition to discussing the company's ongoing projects and future prospects, Lance also touched on the importance of policy decisions in shaping the industry's trajectory. In particular, he called on the Biden administration to lift the pause on liquefied natural gas export licenses that was put in place after the November presidential election. According to Lance, this step is critical for facilitating the growth of the LNG sector and ensuring that the U.

S. remains competitive in the global energy market. Overall, Lance's remarks at the CERAWeek energy conference paint a picture of a dynamic and evolving industry that is poised for growth in the coming years.

With increasing production levels, ongoing investments in key projects, and a focus on policy priorities, companies like ConocoPhillips are well-positioned to capitalize on emerging opportunities and continue to thrive in an ever-changing market landscape.