Speaking out: Hess chairman John Hess
Hess boss warns of 'devastating' crisis
John Hess, the chairman of the US independent producer of the same name, has fired a warning shot to the world, claiming a “devastating oil crisis” looms large on the horizon if global action is not taken.
In a speech delivered at the Money & Oil conference yesterday, Hess said that once economic growth recovers, it is likely the world will return to the market conditions of one year ago.
“The price of $140 per barrel of oil was not an aberration; it was a warning,” he said.
“The approaches of both consumers and producers are based on hope, but what we need is a sober reality.
"The reality is that an oil crisis is coming that could prove devastating to future economic growth. Given the long lead times of five to 10 years from oil discovery to production, we need to act now to avert this outcome.”
Hess concluded that the world must make concessions and put global interests first, so that everyone benefits.
“If consuming nations led by the US commit to conserving energy through new automotive and building efficiency standards, we could save over 5 million barrels per day of incremental demand over the next 10 years.
"If producing nations led by Opec commit to building more oil production capacity, we would add over 5 million barrels per day of incremental supply over the next 10 years.
"In this world, prices would be stable and our global economy could prosper. Does this scenario sound impossible? I do not think so.”
Read the full speech here
