Assessment: He was mind-boggled last month when the Biden administration requested OPEC to increase crude output to suppress prices, overlooking U.S. oil/gas companies …
After half a decade of U.S. oil drillers underinvesting in projects and returning money to shareholders, it could take years to resume pre-pandemic production levels that could further roil oil markets for years to come.
“Even by the God of thy father, who shall help thee; and by the Almighty, who shall bless thee with blessings of heaven above, blessings of the deep that lieth under, blessings of the breasts, and of the womb” Gen. 49:25
“I’m worried that it may get too high, above $100 (per barrel),” according to Scott Sheffield, CEO of shale explorer Pioneer Natural Resources Co., who was speaking to Reuters in an interview at the Petroleum Congress in Houston on Tuesday.
“I hope it stabilizes between an $80 to $100 range over the next several years. We need stability in the oil markets,” he said.
Sheffield said U.S. oil production would only increase by 3% annually because oil companies return cash to shareholders rather than boost CAPEX. In that case, he added oil prices would continue to bid more than $70 a barrel for the foreseeable future.
He was mind-boggled last month when the Biden administration requested OPEC to increase crude output to suppress prices, overlooking U.S. oil/gas companies.
“The Biden administration called up OPEC to increase production and didn’t ask the U.S. to do it,” he said.
Sheffield’s outlook differs drastically from the Biden administration, desperately trying to squash oil prices amid plunging poll numbers due to high inflation ahead of the midterms.
