I’ve always been curious. What’s the whole deal with MW saying we don’t create demand, we meet demand?
We’re a fortune 10 company and the ceo is saying we can’t influence market demand? I’m always confused by this talking point.
We could absolutely influence demand if we invested in renewables, batteries, ai power supply, nuclear, etc…
Idk, any thoughts?
MW's assertion that “we don’t create demand, we meet demand” is fundamentally accurate from a market-structure standpoint. Exploration and production (E&P) companies operate as price takers in a globally integrated commodities market. Their actions influence supply availability and, by extension, pricing and trade flows, but they do not create or expand underlying demand.
Even when an E&P company or a consortium attempts to shape market conditions through production discipline, investment timing, or geopolitical positioning, these actions typically affect near-term supply balance and price volatility rather than structural demand growth. For instance, while the disruption of the Nord Stream pipeline (to be clear, with no implication of corporate involvement) materially altered European gas pricing and supply routes, it did not generate new end-use demand. Instead, the event triggered substitution effects, efficiency gains, and in some cases, outright demand destruction across European industrial sectors.
Case in Point: Germany’s Energy Market Realignment
Driven by the Nord Stream pipeline shutdown and the subsequent energy crisis, Germany significantly reduced its energy consumption between 2022 and 2024 while accelerating its transition to renewable power. To adapt, the country diversified its natural gas supply, built new import terminals, and temporarily increased its use of fossil fuels, all of which led to a turbulent energy market and higher costs. This shift illustrates how supply shocks and geopolitical disruptions can reshape consumption patterns and accelerate long-term structural transitions, rather than expand aggregate demand.
The broader point is that no single supermajor, nor even a coordinated bloc like OPEC+, has the capacity to sustainably increase global net demand for hydrocarbons. Demand growth is driven by macroeconomic expansion, demographic trends, and technology adoption, factors largely outside producers’ control. While producers can influence market sentiment and short-term price formation, they ultimately respond to, rather than define, global energy consumption patterns.
He’s correct, the company does not create demand. They lobby politicians to create global conflict to create demand.
You don't understand the commodity business
The products we sell aren't widgets that we can advertise that make people go, "oh gee I really want to buy more petroleum products! In fact I'll buy some for the whole family!"
@OP I have been wondering the same thing. Does not show leadership.
Oil and gas is a commodity business. Chevron has about 3 percent of global production so it has a negligible effect on price. Growth in global economic activity drives demand, Chevron is a rounding error in the big picture.