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Devon CEO: 'High crude prices are here to stay'

Oil & Gas Journal

As a result, he said in an interview with OGJ, "The [price] model we [at Devon] have, that I think is more likely going forward, is that we will have sustained high prices with an occasional spike down when all those troubled areas are peaceful. It won't last very long because not all of those areas are likely to remain peaceful for very long. The normalized price is a high price that will occasionally drop when we have temporary peaceful conditions before it goes back to its normalized high."

Sticking to strategy
As one of the largest and most consistently successful US independents, Devon is sticking to the same strategies that have built the company over the last 33 years, growing through both the drillbit and through mergers and acquisitions, and heavily weighted to North American and natural gas operations.

"We are, if not the largest, [then] one of the largest [companies] in terms of owning acreage in both the deepwater Gulf of Mexico and in Nigeria," said Nichols in an executive briefing of financial analysts Sept. 28.
"We've been building Devon for a long time." In a change from recent years, he said, "We have not done a major acquisition this year, really because we had done about seven in a row, and it was time to catch our breath for a little bit and study the assets. We're having a [nonstrategic] asset sale in a couple of months."