Occidental, Devon CEOs see oil production staying flat despite rising prices (NYSE:OXY) - Seeking Alpha
Occidental, Devon CEOs see oil production staying flat despite rising prices (NYSE:OXY) | Seeking Alpha
Occidental, Devon CEOs see oil production staying flat despite rising prices
Occidental Petroleum Corporation (OXY),
DVN By:
Carl Surran, SA News Editor
15 Comments ssuaphoto/iStock via Getty Images
The top executives at Occidental Petroleum (NYSE: OXY) and Devon Energy (NYSE: DVN) both said Monday they plan to keep production steady even as oil prices have surged above $90/bbl, Bloomberg reported.
"Only in a market where we see balance would we increase our production, and even then it would be at a moderate pace," Occidental ( OXY) CEO Vicki Hollub said in an interview with Bloomberg.
Even if oil prices top $100/bbl, Hollub does not expect them to stay there long enough to start eroding demand, as "even in a recession, I don't think demand would drop so significantly that it would drop prices."
Devon Energy ( DVN) CEO Rick Muncrief said the company expects to spend less next year to keep oil and natural gas production flat.
Tight labor market conditions continue to restrict production growth, and "any increase in activity becomes somewhat problematic,' Muncrief reportedly said at the American Energy Security Summit in Oklahoma City.
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Related Knowledge Center: ENERGY BASICS: petroleum
While electric-powered vehicles may be the ride of the future, oil remains at least for now the dominant fuel for transportation around the world. And after a period of time at the end of the 20th century when oil was subject to wide fluctuations in price, new supplies in North America as a result of non-conventional recovery techniques have helped stabilize prices.