Speaking at the Goldman Sachs Energy, CleanTech, and Utilities Conference in Miami, Hess CEO John Hess shared his perspective on the oil market, suggesting it is closer to being balanced rather than oversupplied in 2025. This outlook comes despite concerns over demand from China and increased production by U.S. and non-OPEC producers.

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On the company’s operations in Guyana, Hess highlighted the untapped potential of its partnership with ExxonMobil and CNOOC. He shared that the joint venture plans to deploy two additional vessels in 2026 and 2027, increasing the total to six. Even with these expansions, the six vessels will only access about five of the 11 billion barrels of oil equivalent discovered so far, leaving significant room for future growth.

Hess also pointed to improvements in shale oil drilling efficiency, which he said will help offset challenges as the shale sector, outside of the Permian Basin, matures after two decades of development. He noted that Hess Corporation is producing 200,000 barrels per day in shale, a rate he expects to sustain for the next 10 years. Over the past year, the company increased shale output by 40,000 barrels per day in the North Dakota Bakken basin, driven by expanded drilling and completion activities.

Hess also emphasized the importance of replenishing the Strategic Petroleum Reserve (SPR), urging U.S. President-elect Donald Trump to take action. While refilling the SPR would support the U.S. oil industry, Trump may have little incentive to prioritize it, opting instead to blame the Biden administration for depleting the reserve.

By Tom Kool for Oilprice.com

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