The global oil market has found balance as producers have grown accustomed to more rapid price swings, Ryan Lance, chairman and CEO of ConocoPhillips, said Tuesday.
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"We've just decided to embrace volatility," Lance said during an appearance at CERAWeek by IHS Markit. "We can predict prices are going to go up and then they're going to go down, but not necessarily in that order."
Price cycles are getting shorter as peaks and troughs move closer together, Lance said.
"It feels balanced today, but it feels tenuously balanced," Lance said.
Lance said his company has reduced sustaining capital to $3.5 billion, where it can keep output at 1.2 million b/d even with prices below $40/b.
Lance said about 25% of his company's assets are in US shale, with the rest in Alaska, the North Sea and Asia Pacific.
Lance said producers may be unable to improve drilling times, which have been reduced from 20 days to five or six days, but said more work may be done on completions and enhanced recovery.