Phillips 66 chief outlines strategy at Reuters energy forum

Phillips 66 chief executive Mark Lashier used the Reuters Global Energy Forum in New York to warn that refining and petrochemical earnings face sharper swings as uncertainty around the Strait of Hormuz ripples through global supply. The message landed at a forum that gathered more than 600 decision-makers from across the energy ecosystem in New York City on June 23-24, with the agenda centered on AI, electrification, industrial policy and geopolitical realignment.

Lashier’s appearance placed Phillips 66 in the middle of a broader debate over how major U.S. refiners intend to manage fuel demand, volatile margins and the long transition to lower-carbon energy. The company is signaling that it wants to stay visible in that debate, not just on Wall Street but in the policy conversations that shape refinery economics, trade flows and capital spending.

At the forum, Lashier said Phillips 66 has taken about $1 per barrel of cost out of its refining business and is targeting $5.50 per barrel. He also pointed to California, where refining costs are around $15 a barrel, underscoring the spread between Phillips 66’s broader cost goal and one of its highest-cost operating environments. Those figures matter because every dollar removed from refining costs can help cushion the company against swings in crude prices, outages and regional regulatory pressure.

Phillips 66 had already laid out a capital-disciplined posture when it announced its 2026 capital budget in late 2025. The company said it would invest in its NGL value chain and in high-return refining projects, while also setting aside sustaining capital for safe and reliable operations. That spending plan is designed to keep cash flowing into the parts of the business that can deliver returns without overextending the balance sheet.

Lashier’s forum presence gave investors and policymakers a clear read on how Phillips 66 wants to frame the moment: not as a retreat from refining, but as a push to run the portfolio leaner, direct capital toward higher-return assets and absorb geopolitical shocks without losing discipline.