Recent agreement between non-OPEC and OPEC member countries to cut production will force oil and gas prices to rise, John Hess, CEO of Hess told CNBC on Wednesday. Oil and gas are becoming critical components for economic growth in the near future.
“You clearly have to have a new chapter of rising oil prices to attract investment, to grow supply, to keep up with growing demand,” Hess said on CNBC’s “Squawk Box.” “I think we’re now in an upward trajectory of prices.” The OPEC deal to cut supply will eliminate the oil surplus that has deflated prices.
“At the end of the day, what’s most important for oil and gas supply? The price,” Hess stated. “We have to have the price signal to make sure we have enough supply to be affordable, that it’s going to keep price stability, and it’s also going to have supply security.”
Exxon Mobil’s Chief Rex Tillerson and newly appointed secretary of State for Trump has raising concerns about his relationship with Russian President Vladimir Putin. Hess stated that “deals with Putin as a government leader as he would any government leader where he has to do business,” defending Tillerson against rumors that the two are “friendly”.