Jeffrey Ventura on cost leadership
From Range Resources Interview with Jeff Ventura at The Oil & Gas Conference20 · · Oil and Gas 360 - EnerCom
“In a commodity business you want to be lowest cost to be able to survive down cycles like we're in now and be able to get better returns when prices, supply and demand equalize. The other thing is we have not just low cost but we have the largest scale according to Wood Mackenzie. So we have the largest footprint which means and there's a lot of good things that come from having a large footprint. It enables if you have a good technical team, which we have, it enables them to do the same thing over and over again to drive capital efficiencies and operating efficiencies. Having a large footprint allows for changes in technology that we'll be able there to capture those changes in technology. And of course, it enables you to get through down cycles and to have a big inventory going into an upcycle. So size, scale, high quality is where we want to be.”
On , Jeffrey Ventura, Former Chairman, President & Chief Executive Officer at RANGE RESOURCES CORP, spoke about cost leadership during Range Resources Interview with Jeff Ventura at The Oil & Gas Conference20 on Oil and Gas 360 - EnerCom.
About Jeffrey Ventura
At the 2015 Oil & Gas Conference, Jeffrey Ventura, then Chairman, President, and CEO of Range Resources, discussed the company's position in the Marcellus Shale play. Ventura stated that Range Resources had the discovery well and first commercial well in the Marcellus, completed in October 2004, which he said turned the company from a small firm into part of a premier gas field. He described Range as the largest and lowest-cost producer in the Marcellus, according to Wood Mackenzie, and emphasized that size, scale, and low cost are critical in a commodity business. Ventura also highlighted infrastructure projects, including the Spectra Uniontown to Gas City pipeline, which he said transports 200 million cubic feet per day of Range's gas to the Midwest with a pricing uplift, and the Mariner East One project, providing firm transport for 40,000 barrels per day of ethane and propane. He projected that natural gas prices would rise to $3.80 to $4.20 within a year or two due to increasing demand from LNG exports, power generation, and industrial growth, and noted that Range had over 50% of its 2016 gas hedged at a $3.42 floor.