Europe is “struggling with how to write the right policy” to respond to its energy crisis after Russia shut off gas supply to the region, according to the boss of US oil and gas producer ConocoPhillips.
(Bloomberg) — Europe is “struggling with how to write the right policy” to respond to its energy crisis after Russia shut off gas supply to the region, according to the boss of US oil and gas producer ConocoPhillips.
“Some of what they’re talking about with the excess profits tax, it’s going to have the unintended consequences of reducing supply long term,” Chief Executive Officer Ryan Lance said in a Bloomberg Television interview Wednesday on the sidelines of a Barclays Plc conference in New York.
“The solution is not the tax” he said. A windfall tax like the one the European Union is currently weighing would mean “supply is going to go down while demand is still up.”
ConocoPhillips is on the lookout for more opportunities to grow its liquefied natural gas portfolio, he added. The US Gulf Coast, Mexico’s west coast and Australia are all options. Other talking points from the interview:
- The company’s gas production will grow over time, and wants exposure to international pricing
- Mid-cycle oil and prices will be structurally higher for the next few years, CEO said
- No return to natural gas prices of $2 per million-British thermal unit anytime soon
- Cost inflation in the US Permian Basin is running at 15%-20% this year
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