Chevron boss hints at the future of gas prices as they hit a national average of $3.67 per gallon

Chevron CEO Mike Wirth confirmed that, gas-guzzling Americans will ensure demand for oil grows despite uncertainty in the market. 

At the 27th annual Milken Institute Global Conference, Wirth discussed his expectations for strong financial performance and higher oil production through the remainder of the year with 'Mornings with Maria' host Maria Bartiromo.

'Markets are relatively balanced. Demand growth is strong. Last year was all-time record demand. We'll see demand grow again this year,' Chevron CEO Mike Wirth said.

'So, the end of the oil age is not yet upon us.'

On national average, gas prices have risen to $3.67 per gallon in the past week. This is 14 cents higher than this time last month and 8 cents from this time last year, according to AAA.

Chevron CEO Mike Wirth confirmed that, regarding America's consumption and output of oil, uncertainty in the market will not stop the need for gas

Gas prices have risen to $3.67 per gallon in the past week, which is 14 cents higher than this time last month and 8 cents from this time last year

The demand for gas increased from 8.42 million barrels per day to 8.62 million barrels per day

According to Energy Information Administration data, the demand for gas increased that same week, from 8.42 million barrels per day to 8.62 million barrels per day. 

He also said that risks associated with geopolitical events, such as the conflicts in the Red Sea, Israel-Hamas, and Russia-Ukraine, 'are things to pay attention to because they could impact markets in the short term.' 

'We did see some impact on our supply of natural gas into Israel during the early days of the conflict,' he said.

'We now have both platforms online and are meeting all the needs not only for Israel's domestic market, but also for Jordan and Egypt, where the gas goes as well… the risks in a situation like this are that, through some sort of an escalation [or] miscalculation, you could see impacts on physical supply in an area that supplies so much of the world's oil. And that's a real concern.' 

Wirth said that Chevron expects to generate 10% compound annual growth in free cash flow over the next few years by bracing for this 'volatility.'

He also emphasized the importance of having a balance sheet that can handle these  'very low prices.'

'Driven by the Permian, driven by some other shale assets in our portfolio, projects in the deepwater Gulf of Mexico, we've got a number of other assets that are delivering growth,' he said.

'The combination with Hess only strengthens our cash flow longer into the future, not only to the end of this decade, but well into the next.'

A merger between Chevron and Hess was announced last October and is expected to close within the next year.

The Chevron and Hess merger is expected to close within the next year

Wirth told Maria that the merger is good for company shareholders and the country

'This is a good deal for shareholders of both companies, it's a good deal for the industry, it's a good deal for the country of Guyana,' Wirth told Bartiromo at the Global conference.

'We are very confident that the deal will close.'

Wirth said that the company culture at Hess, which 'values safety, integrity, and protecting the environment,' directly align with his company's goals.

He also mentioned that while Chevron has a strong business presence in the Gulf of Mexico, Hess has a presence in North Dakota.

'The combination will create a premiere energy company that will be good for our country,' Wirth said.