Skip to Content

EOG Resources Inc EOG

Rating as of

Morningstar’s Analysis

Valuation
Currency in USD
Is it the right time to buy or sell?
Find out with Morningstar Premium
Is it the right time to buy or sell?
Find out with Morningstar Premium

1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Long-Term Oil Demand Is More Bullish Than You Think

Preston Caldwell Senior Analyst

Analyst Note

| Preston Caldwell |

Many investors are wondering about the future of oil demand, given discussion around achieving net-zero carbon emissions by 2050. Surprisingly, a consensus base case for oil demand doesn't exist. Other forecasters typically lean on a variety of scenarios rather than staking out a base case. Neither the typical "business-as-usual" scenario nor the typical bear scenario is a good guide for long-term oil demand. The business-as-usual scenarios reflect pessimistic attitudes when it comes to major clean technologies like electric vehicles. On the other hand, the bear scenarios reflect very rosy assumptions around the implementation and efficacy of carbon policy. Our base case is far closer to the business-as-usual scenarios for oil demand than the bearish scenarios. We project oil demand to drop from 99 mmbp/d in 2019 to 88 mmbp/d in 2050, an 11% drop or 0.4% annual decline.

Read Full Analysis

Company Profile

Business Description

EOG Resources is an oil and gas producer with acreage in several U.S. shale plays, including the Permian Basin, the Eagle Ford, and the Bakken. At the end of 2020, it reported net proved reserves of 3.2 billion barrels of oil equivalent. Net production averaged 754 thousand barrels of oil equivalent per day in 2020 at a ratio of 72% oil and natural gas liquids and 28% natural gas.

Contact
1111 Bagby, Sky Lobby 2
Houston, TX, 77002
T +1 713 651-7000
Sector Energy
Industry Oil & Gas E&P
Most Recent Earnings Sep 30, 2021
Fiscal Year End Dec 31, 2021
Stock Type Hard Assets
Employees 2,900

Related