Shale oil producer EOG Resources on Sept. 8 said U.S. production gains next year will slow amid persistent supply chain constraints and inflationary pressures, echoing a rival's sentiment.
EOG forecasts overall U.S. oil output to increase by between 700,000 bbl/d and 800,000 bbl/d this year. But in remarks at the Barclays CEO Energy and Power conference on Sept. 8, EOG's top executive predicted that next year's gains likely would trend lower.
"Our internal models count on the lower end" of that same range for 2023, said CEO Ezra Yacob, referencing volume growth.
Global energy prices have surged since Russia invaded Ukraine in February, prompting calls for U.S. producers to increase production. But oil executives say they cannot accelerate output due to labor and materials constraints.
Pioneer Natural Resources this week forecast around 500,000 bbl/d of U.S. oil production growth this year, one of the lowest forecasts. Next year's increases would likely fall below that level, its CEO said.
The U.S. Energy Information Administration this week also cut its forecast for 2022 oil output to 11.8 MMbbl/d, down 100,000 bbl/d from a previous forecast. It also lowered its 2023 outlook by 100,000 bbl, to an average 12.6 MMbbl.
Yacob said he was bullish on U.S. natural gas, pointing to a surge in demand.
"We actually see more of a fundamental shift on the demand side," he said, pointing to growing demand from petrochemicals.
EOG's Dorado discovery in South Texas could have around 20 Tcf of natural gas. Yacob on Sept. 8 said well costs and productivity were "outpacing" expectations and that the asset would demand more capital investment.
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