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Range Resources Corp RRC

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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

Fort Worth-based Range Resources is an independent exploration and production company with that focuses entirely on its operations in the Marcellus Shale in Pennsylvania. At year-end 2020, Range's proved reserves totaled 17.2 trillion cubic feet equivalent, with net production of 2.2 billion cubic feet equivalent per day. Natural gas accounted for 70% of production.

Contact
100 Throckmorton Street, Suite 1200
Fort Worth, TX, 76102
T +1 817 870-2601
Sector Energy
Industry Oil & Gas E&P
Most Recent Earnings Sep 30, 2021
Fiscal Year End Dec 31, 2019
Stock Type Distressed
Employees 533

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