• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 2 days GREEN NEW DEAL = BLIZZARD OF LIES
  • 3 days The United States produced more crude oil than any nation, at any time.
  • 8 days e-truck insanity
  • 3 days How Far Have We Really Gotten With Alternative Energy
  • 7 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 6 days James Corbett Interviews Irina Slav of OILPRICE.COM - "Burn, Hollywood, Burn!" - The Corbett Report
  • 6 days The European Union is exceptional in its political divide. Examples are apparent in Hungary, Slovakia, Sweden, Netherlands, Belarus, Ireland, etc.
  • 8 days Biden's $2 trillion Plan for Insfrastructure and Jobs
  • 8 days "What’s In Store For Europe In 2023?" By the CIA (aka RFE/RL as a ruse to deceive readers)
  • 11 days Bankruptcy in the Industry
U.S. Senator Pushes for Ban on Chinese Electric Vehicles

U.S. Senator Pushes for Ban on Chinese Electric Vehicles

Senator Brown urges President Biden…

U.S. Drilling Activity Continues to Drop Off

U.S. Drilling Activity Continues to Drop Off

The total number of active…

Irina Slav

Irina Slav

Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.

More Info

Premium Content

Pioneer CEO Paints Gloomy Growth Picture For U.S. Shale

Drilling rig

The immediate future of U.S. shale remains bleak despite Saudi Arabia’s pledge to cut an additional 1 million bpd in production to prop up prices.

“I really don’t see much increase in the Permian Basin or the U.S. shale over the next several years,” Scott Sheffield said at an investor webcast this week, as quoted by Bloomberg.

“I never anticipate growing above 5% under any conditions,” Sheffield also said. “Even if oil went to $100 a barrel and the world was short of supply.” The shale major CEO explained this was because the service costs associated with adding more drilling rigs would undermine profit margins.

The news is disheartening as West Texas Intermediate breached $50 a barrel for the first time in almost a year after the largest OPEC oil producer announced its new, unilateral, production cutting plans. At WTI prices of $50 a barrel, more U.S. shale drillers can break even, so it would make sense that the higher price would motivate more drilling, if only so the drillers could continue paying their debts.

However, the oil demand situation remains precarious as the pandemic rages on, and vaccines are being administered a lot more slowly than hoped.

In this context, Pioneer’s Sheffield said he expected total U.S. oil production to remain flat this year, at around 11 million bpd. He also expects more companies to merge.

Pioneer was one of the big—and few—dealmakers of 2020, acquiring Parsley Energy for about $7.6 billion in an all-stock deal that also included Parsley’s debt. The Permian was the hottest spot for deals, with Conoco acquiring another Permian major, Concho Resources and Diamondback buying QEP Resources and Guidon Operating.

According to Sheffield, the Permian will remain a bright spot in the U.S. shale patch despite the flat production outlook. Two others, however, the Bakken in North Dakota and the Eagle Ford in Texas may have plateaued as regards production growth, he said.

By Irina Slav for Oilprice.com

ADVERTISEMENT

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment
  • One Second on January 07 2021 said:
    This is only true if investors and banks this time resist the urge to throw more money onto the bonfire. Greed is a powerful motivator but a bad adviser.

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News