Occidental, ConocoPhillips CEOs Talk Shale Growth as Challenges Mount

The U.S. shale industry is challenged to overcome supply chain woes as the energy crisis and years of weak oil and gas investment call for action to meet today’s rising energy demand.

Occidental-Petroleum-Vicki-Hollub-Daniel-Yergin-CERAWeek

S&P Global Vice Chairman Daniel Yergin chats with Occidental Petroleum Corp. CEO Vicki Hollub on March 8 during CERAWeek by S&P Global in Houston. (Source: CERAWeek/Twitter)

HOUSTON—Shale producers are facing supply chain challenges as they shift plans to grow production, instead of original plans by some to hold steady, to meet growing demand amid geopolitical turmoil and pandemic recovery.

“We’re in a really dire situation here,” Occidental Petroleum Corp. CEO Vicki Hollub said March 8 during CERAWeek by S&P Global, referring to challenges that include supply chain issues in oil country tubular goods, sand and other materials. “We’ve never faced a scenario where we need to grow production, when actual supply chains not only in our industry but every industry in the world [are] being impacted by the pandemic.”

Add to this difficulty finding qualified people to safely and quickly start up rigs.

“Nobody really anticipated needing to grow significantly, and so that’s the challenge now,” she said. “If you didn’t plan for growth, you’re not going to be able to achieve growth today.”

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Velda Addison

Velda Addison is the senior editor of digital media for Hart Energy’s editorial team. She covers energy with a focus on renewables.