ConocoPhillips Sees Oil Price Floor Rising to $70 Per Barrel

ConocoPhillips Chairman Ryan Lance outlined his expectations for the oil market during a speech at the Energy Intelligence Forum in London. He anticipates the oil price floor to rise to around $70 per barrel, with a mid-cycle price of $65 to $70 for the US West Texas Intermediate (WTI) crude benchmark. Lance noted that the global oil system withstood the strain of this year's Middle East conflict without breaking, demonstrating resilience in the face of geopolitical tensions.

Lance predicted that US oil production could surpass 14 million to 14.5 million barrels per day if current price levels are maintained. He also forecasted that global oil demand may take until 2028 or 2029 to recover from the current crisis, with no signs of slowing demand growth afterward. The key challenge, according to Lance, is identifying where conventional oil production will come from to meet this increasing demand.

ConocoPhillips is currently prioritizing upstream investments over midstream projects, reflecting a strategic focus on exploration and production. Lance's remarks provide insight into the company's outlook on oil prices, production levels, and the long-term demand landscape.