A significant, years-long oil supply crunch may be approaching due to insufficient investment in exploration and production, Hess CEO John Hess said Monday at IHS CERAWeek. “As an industry we’re not investing enough for supply growth to keep up with demand growth,” Hess said. Hess said that decreased investment throughout the world, particularly in the offshore, will likely cause supply to plateau or drop as demand continues to rise. The supply crunch will likely hit in three to five years, when current cuts in investments will begin showing up in declining offshore supply. “We’re not investing enough to keep the offshore investment pipeline full,” he said. Related Capitol Crude podcast: John Hess on the ‘new chapter’ for oil prices, US shale production Offshore rig utilization is falling and offshore drilling rates have fallen to about $200,000/d currently from about $600,000/d at its recent peak. Still, he said that much […]