Hess CEO says U.S., allies should double, then quadruple oil stockpile release

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Governments have not done enough to ease the pain to global oil and gas markets from Russia's invasion of Ukraine, and the U.S. and its allies should double their planned release from strategic petroleum reserves over last week's agreed amount, Hess (NYSE:HES) CEO John Hess said Monday at the CERAWeek by S&P Global conference.

The U.S. led a coalition that committed to a joint release of 60M barrels of crude from strategic reserves, but Hess said the countries should release 120M barrels in response to the surge in global energy prices, and then follow up with another 120M barrels next month "and say more is coming if needed."

The U.S. must "stand tall here and ensure the energy security of our country and the world by ensuring a strong oil and gas industry and recognizing the strategic role it plays in everybody’s lives," Hess told CERAWeek.

Hess released presentation slides as part of the CERAWeek event.

Comments

[rationale thinking]

Can't believe Biden's comments yesterday. Let's buy oil from Iran, Venezuela and the Saudis more dictatorships and people that us (Americans) but love the politicians they own. How about the old saying drill baby drill here in America first.Why is no one saying drill here and open the Keystone and other pipelines Joe closed down.

[playwthebull_getthehorns]

Hard to believe this is a CEO of an Oil major. What a stupid statement. Doubling and "quadrupling" down on bad policy. The US doesn't even have that in reserves at the moment. I'll be letting my $HES shares go.

[fully awake]

NO! The strategic reserves aren't for politicians to play with for short term political gain, or temporary price relief. These reserves are there for critical times like direct war involvement when sources are cut off. Reserves aren't there to cover for the idiotic green policies that have put us and our allies in grave danger by attacking American oil and gas production. No political cover for the liberal Democrats who've put us in this ridiculous position. No dwindling of our critical reserves@!

[tewjr]

Not considering these supplies may be needed if things get much worse or we need this oil for offsetting other conflicts at home. At least we filled it up when prices were low and selling it when prices are high. I have also been told our strategic storage is sour crude which requires blending increasing demand for oil?

[Victor Justice]

This sounds like price fixing. Republicans should hate this idea, because they’re for “free markets.” LOL

[Go and do likewise]

Or increase Canadian oil shipments via rail. $USDP

[notre]

There needs to be a peaceful solution. This rhetoric is only hurting the middle and lower classes of society. Apparently there isn’t shortage of supplies of oil right now yet prices are through the roof. If these politicians create a recession the Feds don’t even have any bullets left. Inflation was already bad, if they try to raise rates now they will only add fire to the situation. This issue needs to be dealt with some basic common sense and level headed minds.

[Jeff Boyd]

@notre Sometimes there are no solutions and people are just out-of-luck.

[AlexS]

We shouldn't use SPR withdrawals to offset foolish foreign and domestic policies.

[Dividend Seeker]

Bingo

[BCO]

The word “strategic” implies that this oil reserve is important for our military readiness in the event of war. It is more important to actually have that reserve that to deplete it to bring down the price of oil and gas.
I’m positive our enemies would love to see the US and our allies caught with short supplies in the event we have to go to war. The ESG crowd would prefer we have to fight with gliders and sailboats.

[rationale thinking]

How about doing what we did before Biden came into office, explore and pump here in the US and be an energy exporter. We were energy independent for the first time in 70 years in 2020.

[DigitalRobberBarons]

@rationale thinking too logical for the politicians and masses to accept.

[busterbrown]

@rationale thinking Not that I'm against drilling for oil, but wasn't drilling for oil in the US a race to bankruptcy because oil went so low creating huge debt? Are the big oil producers wanting to drill to bring down the price of oil?

[goodfellasfinancial]

Then buy back at 150?

[Jeff Boyd]

Easy to say something like that and I'm not saying we shouldn't draw it down but the fact is that there just isn't enough there to have a big impact on prices.

www.energy.gov/...

[Entreri]

Keystone and drill baby drill.

Canada currently sends 4.1M barrels a day to the US. Russia 90,000.

Didn’t a Michigan Governor try to get rid of Enbridge natural gas pipeline? The US imports 98% of it’s gas from Oh Canada. Germans are wishing they did too.

[Tizthelaw2020]

@Entreri News from the province of Alberta premier Jason Kenny is removing gas Tax effective April 1st, is I'm sure, welcomed.
On a separate note, an increase to the Federal government's Carbon Tax comes into effect April 1st.

[valrisk]

Sound advice that is not in his best interest but in the world's.
Thank you John Hess.

[dandroidz]

DoD is the largest consumer of fossil fuels. The Pentagon's FY22-23 Budget line item is effed now, as Im sure worst case they expected $3.50-$4/gal diesel or JP5 for forecast. They definitely won't stop war mongering either. We pay the price as taxpayers for ourselves and Govt bafoonery

[Solojif1]

Then Hess sells the US government oil at $130/bbl to refill the SPR.

[Leftshark]

Then what…

[Finding Your Retirement]

@Leftshark then buy it back from him at $180

[jc4877]

@Finding Your Retirement in the past the government has released when prices are high and bought back when they were low. It’s better that way and helps reduce cyclicality.

[Leftshark]

@jc4877 I think this is secular, not cyclical