Operational excellence and flexibility position Phillips 66 for a changing energy market
The energy market moves fast, and Phillips 66 is built for it.
At the Semafor World Economy Summit 2026 in Washington, D.C., and in interviews with national media, Chairman and CEO Mark Lashier discussed the company’s strategy, energy markets and the current geopolitical environment. He told summit attendees the energy business is “more critical than ever.”
From refinery performance and crude flexibility to potential new pipeline capacity and renewable fuels, Phillips 66 is positioning itself to respond to both near-term volatility and long-term shifts in demand.
Lashier says the company is focused on meeting the world’s energy needs, telling Bloomberg’s “The Close,” “We are running at strong levels.”
Phillips 66 is relying on strategic investments, integration and a diversified business to navigate changing conditions. Lashier said the company’s refineries are focused on operational excellence. “We’re doing everything we can,” he said. “Even before the conflict in Iran took place, we were running at very high rates.”
Why it matters
Market volatility can drive rapid price changes. By focusing on operational excellence, flexibility in crude sourcing and safe, reliable performance, Phillips 66 can continue delivering the energy products people need.
Global conflict affects prices, not access
Lashier said conflict involving Iran and blockades in the Strait of Hormuz are increasing prices by disrupting global supply, but they do not threaten the company’s access to crude. “In North America, we’ve got unimpeded access…Less than 1% of the crude we process comes from the Middle East, but it is a global commodity, and so the price will be impacted, but we’ll have plenty of access,” he said.
Investing in supply for evolving Western U.S. markets
The West is entering a period of tightening supply. California is shifting from a production market to an import market, and neighboring states like Arizona and Nevada depend heavily on those barrels from California. Lashier emphasized that Phillips 66 is committed to serving the West. “We believe that refined products have a good, strong future there,” he said, noting the company’s proposed Western Gateway Pipeline project with Kinder Morgan to move Midcontinent and Gulf Coast supply into Phoenix, Southern California and Las Vegas.
That project could transport up to 200,000 barrels per day and is expected to be completed in 2029. The plan includes a new pipeline segment from Borger, Texas, to Phoenix, along with changes to existing pipeline infrastructure to move Midcontinent barrels into the broader system.
Renewable fuels and long-term diversification
In California, Phillips 66 also owns and operates the Rodeo Renewable Energy Complex, which was converted from crude oil refining to renewable fuels production using feedstocks such as used cooking oil, animal fats and soybean oil.
The facility produces renewable diesel and sustainable aviation fuel. Lashier said it is an important part of the company’s portfolio.
According to Lashier, the company continues to advocate for an “all-of-the-above approach to energy.”
For Phillips 66, operational excellence, infrastructure investment and portfolio diversity are essential to succeeding in a market where reliability, flexibility and energy security matter more than ever.