“None of us have a great sense for where oil prices are going,” said Al Walker, CEO of Anadarko Petroleum APC +4.41%. So for some perspective Walker talked to his friend Jim Flores, CEO of Freeport FCX +0.00% McMoRan’s oil and gas business. “I asked him,” Walker said, “Jim, where are we going?”
Flores’ response: “Baby, it’s raining. It’s going to rain for a long time and we’re all going to get wet. A few people are going to drown.”
Anadarko will be one of the survivors, said Walker. “We’re capable of handling whatever the market gives us.”
Walker was speaking Wednesday at the Barclays oil and gas conference in New York. In a half-hour presentation he made a convincing case for why Anadarko was not going to be one of the companies to drown in this storm of plunging oil prices. And he presented some thoughts on how the global oil industry is set to evolve in the years to come. My takeaway from his comments: once the industry emerges from these doldrums, America’s tight oil producers are set to have a lot more influence on global oil pricing than is commonly appreciated.Read the whole article by clicking here.
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