CERA: Action needed to avoid oil crisis, Hess chief says

HOUSTON, Feb. 15 — Oil companies, oil-producing countries, and consumers need to act now to avoid the oil crisis that is coming within the next 10 years, said John B. Hess, chairman and chief executive of Hess Corp.

“It is not only a matter of demand. It is not only a matter of supply


“Given the long lead times of at least 5-10 years from discovery to production, an oil crisis is coming and sooner than most people think. Unfortunately, we are behaving in ways that suggest we do not know there is a serious problem,” Hess said.

That’s partly because of conflicting viewpoints. “Some say that there is a large endowment of resources and that there is nothing to worry about. Some say that we have already hit peak oil, and there’s little we can do. Others say that the rapid development of renewables will fill the gap between demand and supply and reduce our carbon footprint in the process,” Hess noted. However, he said, “It is imperative that we change our mindset, our sense of urgency, or the consequences will be severe.”

On the demand side, Hess said, “We need to improve fuel efficiency in transportation and increase investments in breakthrough technologies to make fuel cell vehicles a reality.” As for supply, the Organization of Petroleum Exporting Countries and non-OPEC producers need to increase long-term investments “to grow production greater than currently planned to ensure we avoid a supply shortfall in the next 10 years and the calamity that would ensue,” he said.

Penn Energy