Why Matthew Fleeger Sees Long-Term Global Oil and Gas Dependency

As the world’s population increases, energy demand is also rising. While interest in alternative energy is growing, the world still primarily operates on a foundation of oil and gas. In fact, 80% of the world’s primary energy comes from coal, oil, and gas.

According to Matthew Fleeger, the president and CEO of Gulf Coast Western, oil and gas will continue to remain a major world industry for the foreseeable future. “The world runs on oil, not just from an energy basis, but also from the standpoint of the thousands of products that are created from it. It is the most important commodity on the planet, and the world’s population is expanding, not contracting,” he says.

Oil and Gas Support Modern Living

According to Statista, 54% of homes in the U.S. relied on gas to keep the heat on in 2021. Gas and diesel vehicles still make up 97% of vehicles on the road today. While some might dream of a purely electric society, the infrastructure costs and changes required to go electric are out of reach for the near term — which means America will continue producing and consuming petroleum products.

“The U.S. is one of the top hydrocarbon-producing countries in the world, as well as one of the top consumers of the same products,” Matthew Fleeger says. But this doesn’t mean the world has to trade healthy or eco-friendly living for modern conveniences.

“The U.S. produces hydrocarbons in the cleanest way possible, as compared to the others. We are the tip of the spear in ever-evolving technological advances in discovery, drilling, and production,” Fleeger adds. According to the U.S. Energy Information Administration, advances in 3D seismic technology and hydraulic fracturing have made U.S. oil and gas more productive and eco-friendly than ever before.

Petrochemicals Are Versatile and Prolific

“Let’s begin with oil and gas itself. Both are naturally occurring substances found all over the world,” Matthew Fleeger says. Oil and gas have so much potential because they can create over 6,000 products. These materials are the foundation of many items Americans rely on — including secondary energy sources.

“Try building an electric car, a wind turbine, a solar panel without using hydrocarbons in any way. Try getting any green products to market without it. Try feeding the planet without the fertilizers created from hydrocarbons. Try planting and harvesting the land without diesel-powered tractors,” Fleeger says. Whether it’s the food on grocery store shelves or the plastics used in wind turbines, oil and gas continue to function as the basis for a wide range of materials and products.

Matt Fleeger: Demand — and Pricing — Is on the Rise

The global population is booming. According to the United Nations, the global population reached 8 billion in 2022 and will reach nearly 10 billion by 2050.

More people means a greater demand for energy, products, and food — all of which require oil and gas. A report by OPEC found global oil demand will rise to 110 million barrels per day by 2045, with global energy demand increasing by 23% from 2023.

The increasing oil demand will continue to fuel price increases for this valuable commodity. “I wouldn’t necessarily characterize the current commodity pricing environment as ‘surging,’ but prices have certainly stabilized in the $80 range,” Matthew Fleeger explains. ”Several of the largest commodity brokers are calling for prices in the $90 to $100-plus a barrel in the near term.”

Oil and gas will be the default source for energy and raw materials for decades to come. However, Matthew Fleeger acknowledges that the future of energy lies in relying on what’s most available to support growing populations.

“The world needs to embrace every possible energy source available, specific to each geographic region. The countries with the most available energy output are typically the most productive economically and provide the highest quality of life for their citizens,” he explains. “Nuclear energy is actually one of the cleanest, most efficient means of power generation for our homes, factories, and cities. Wind, solar, hydroelectric, coal, and oil and natural gas should all be utilized where they can be, and done so in the most responsible manner possible.”

Fleeger says it’s business as usual for him and the Gulf Coast Western team: ongoing field research and prospecting. “Our business model early on was focused solely on exploratory drilling,” he says. “We were looking for the next big discovery and we had horrible luck. In 2018, we focused our efforts on field development in areas with proven reserves and we haven’t looked back since. Our goal is to remain on this path for the foreseeable future.”