EOG Resources (EOG) J.P. Morgan Energy, Power & Renewables Conference 2026 summary

Macro environment and commodity outlook

• Recent geopolitical disruptions have removed 1.3–1.5 billion barrels of oil capacity, leading to low global inventories and a robust market outlook for the next several years.

• Restoration of supply through the Strait of Hormuz is expected to be gradual, with 90–95% of capacity returning in 3–4 months, but some uncertainty remains about infrastructure damage.

• Demand displacement, not destruction, has occurred; China is expected to quickly absorb returning supply to meet GDP targets.

• WTI is expected to have a price floor around $60 due to SPR refilling, with an average high-end price near $80 over the next few years.

U.S. supply and productivity trends

• U.S. oil production growth depends on price: flat to slight growth at $60–$65, more growth at $85–$90.

• Industry innovation and longer laterals have driven significant cost reductions and efficiency gains over the past five years.

Natural gas fundamentals

• U.S. gas inventories are at five-year highs, but LNG export growth and power demand (including data centers) are expected to drive future demand.

• Recent data center projects are providing new demand relief valves, supporting price stability.

• Long-term outlook for natural gas remains highly constructive, with strong positioning in South Texas.