U.S. oil producer ConocoPhillips sees global demand returning to 100 million barrels per day and growing from there, a senior executive said on Thursday.
The view stands in contrast to rival BP Plc , which sees the coronavirus pandemic leaving a lasting effect on global energy demand, though ConocoPhillips still expects “quite a bit of uncertainty next year” in oil demand, Senior Vice President Dominic Macklon said during a Q&A with Raymond James.
Capital spending in 2021 will be “somewhat below” its original planned 2020 level of $6.6 billion, Macklon said.
The hardest-hit area of the oil industry has been U.S. shale. While U.S. shale output was about 8.2 million bpd at the start of the year, that level will likely fall by 4 million bpd in 2022, Macklon said.
While ConocoPhillips left seven drilling rigs at work in shale fields, it cut all fracking crews earlier this year as oil prices crashed. It is returning two frac crews to the field, Macklon said.
The company has not had layoffs in 2020 and remains committed to growing the dividend, Macklon said.
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