The energy industry has always been in transition, Chevron CEO Michael Wirth says. “It’s always moved to a more reliable, affordable and cleaner state.” Davos2020
CEO Michael Wirth told CNBC on Thursday that oil prices may not reach $100 for a "long time" thanks to the boom in U.S. shale production.from the World Economic Forum in Davos, Switzerland. "We've moved from a period of time where there was a belief we were approaching peak oil, and now we're in an era of abundance."
He said that he doesn't believe the world will ever run out of oil, which means that prices are now less prone to bouts of volatility. This was on display following the September attacks on Saudi Arabia's oil facilities in Abqaiq and Khurais, which took an estimated 5.7 million barrels of oil offline. Oil prices initially spiked 15% before returning to their pre-attack levels within weeks.
Wirth said that "efficiency" is the "age old story" of the oil industry, and that companies cannot rely on high oil prices for profits. "You have to run your company -- it's a commodity business -- with capital discipline, with cost discipline, and a real focus on maintaining that through the cycle," he said.
One of the central themes at this year's World Economic Forum was sustainable investing, including how society can transition to cleaner sources of fuel. The conference follows a number of climate-related initiatives announced by companies over the last week, including Microsoft saying it will be
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