Oil price floor likely rising to $70/bbl, ConocoPhillips chairman says
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The global oil system bent but did not break from the Middle East war, but the oil price floor likely will rise to ~$70/bbl with a mid-cycle price of $65-$70 for the U.S. WTI crude benchmark, ConocoPhillips (COP) Executive Chairman Ryan Lance said Monday at the Energy Intelligence Forum in London, according to Reuters.
It could take until 2028 or 2029 for global oil demand to recover from the current crisis, with nothing to stop demand from continuing to grow thereafter, Lance said.
"The real strategic question for companies like mine is where is the conventional [production] going to come from to satisfy that growing demand," the chairman said, adding that Conoco (COP) is currently more focused on upstream rather than midstream oil investments.
The company is weighing an unsolicited offer for its North Sea business, but it has not reached a decision, Lance also confirmed.
ConocoPhillips (COP) is a major owner and operates the U.K.'s Teesside terminal and holds stakes in several producing fields off Norway, including the Ekofisk field.
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