Both Occidental Petroleum and Devon Energy have announced their plans to maintain steady production despite the recent surge in oil prices. Occidental CEO Vicki Hollub stated that they will only increase production at a moderate pace if they see a balanced market. Hollub also expressed confidence that even if oil prices exceed $100 per barrel, they will not stay at that level for long enough to impact demand significantly. Similarly, Devon Energy CEO Rick Muncrief revealed that the company expects to spend less in the upcoming year while keeping oil and natural gas production flat. Muncrief cited tight labor market conditions as a limiting factor for production growth.
The decision to maintain steady production levels reflects the cautious approach taken by Occidental Petroleum and Devon Energy amidst the rise in oil prices. Both companies are aware of the volatility of the oil market and are hesitant to overproduce. Occidental’s CEO, Vicki Hollub, emphasized the importance of a balanced market before considering any production increase. She also expressed confidence that even in the event of a recession, demand would not drop significantly enough to cause a decline in oil prices.
Devon Energy’s CEO, Rick Muncrief, echoed similar sentiments, attributing their decision to spend less next year to the challenges posed by the tight labor market conditions. Muncrief recognizes that any increase in activity becomes problematic and may hinder production growth. Both companies are strategically focusing on maintaining stability rather than aggressively capitalizing on the current surge in oil prices, demonstrating a cautious and measured approach to their operations.