Former Shell Oil President Hofmeister In Buying Mode in Oil Patch - FBN Interview

Citizens For Affordable Energy CEO and Former Shell Oil President John Hofmeister spoke with FOX Business Network’s (FBN) Maria Bartiromo about his thoughts on oil. Hofmeister said, "the reality is, everyday this world needs 91 million barrels of oil" and that the issue is "we’re on our way to 100 million barrels a day sometime by the end of the decade." Hofmeister went on to say, "I'm not too worried about the long-term future. I’m actually in a buying mode myself because there are some great values in the oil patch right now and that will continue"

Excerpts from the interview are below.

On his observations on the selloff of oil:

"Well like most times it’s probably overdone and it is this wall of worry that your other participant mentioned is true, but it’s – traders do what traders do and they’re going to drive until they can get the bottom price and then they’re going to drive it back up. The reality is, everyday this world needs 91 million barrels of oil just to get through the day and that is a lot, a lot of oil and we’re on our way to 100 million barrels a day sometime by the end of the decade so the underlying requirement of oil and natural gas is not anything but unrelenting. In other words, we got to have it. So we’re in a selloff period. People will adjust particularly overleveraged drillers will have to adjust quickly. Their banks will assist upon it and unfortunately we will go through the whole decline episode when there is no rational reason for doing it other than a slight supply glut of one percent, all of one percent that’s the amazing part about this supply glut and so I’m not too worried about the long-term future. I’m actually in a buying mode myself because there are some great values in the oil patch right now and that will continue."

On the demand of oil:

"People have little confidence that Asia and China are going to pull out of whatever low growth period there are in or in the case of Japan all but no growth and Europe of course all but no growth and so there looking at the demand side and there seeing gloom and doom. I don’t share that with you because when the U.S. economy does well doesn’t that impact the rest of the world, of course it does. China remands the U.S. factory and so I think we will see in the course of the next six months an improving global situation that won’t turn it around instantly, but I think it will set the stage for the turnaround."

You May Also Be Interested In

• Morgan Stanley CEO: investment banking momentum is building - Conference Call
• Globe Life Inc. (GL) Refutes Allegations
• UnitedHealth (UNH) beats earnings, revenue estimates in Q1; shares up