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Continental Resources Inc CLR

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Morningstar’s Analysis

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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.

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Company Profile

Business Description

Continental Resources is a U.S. oil and gas producer targeting in the Bakken Shale in North Dakota, the Delaware Basin in Texas, and the Scoop/Stack plays in Oklahoma. At the end of 2020, the company reported net proven reserves of 1.1 billion barrels of oil equivalent. Net production averaged 300 thousand barrels of oil equivalent per day in 2019, at a ratio of 54% oil and 46% natural gas and NGLs.

Contact
20 North Broadway
Oklahoma City, OK, 73102
T +1 405 234-9000
Sector Energy
Industry Oil & Gas E&P
Most Recent Earnings Sep 30, 2021
Fiscal Year End Dec 31, 2019
Stock Type Hard Assets
Employees 1,201

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