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U.S. crude oil production is poised to surpass 14M bbl/day before plateauing later in this decade, and then will stay there “for a long time,” ConocoPhillips (NYSE:COP) CEO Ryan Lance said Tuesday.
Production from the Permian Basin will increase by 300K-400K bbl/day this year, Lance told the CERAWeek energy conference in Houston.
Meanwhile, the flurry of deals in U.S. shale during the past six months is a “natural evolution in our business” and is not over yet, Lance said.
“It’s going to continue and it’s healthy for the business,” the CEO said, citing the need to lower the cost of supply and build scale.
ConocoPhillips’ (COP) $8B Willow project in Alaska’s North Slope is underway and on course to produce first oil in about 4-5 years, Lance said.
Finally, the CEO said this week the Biden administration needs to lift its pause on liquefied natural gas export licenses after the November presidential election.
The pause is causing concern among customers and could lead to higher gas prices in the future if it is prolonged, Lance told Bloomberg.