Global oil demand will likely recover to its pre-pandemic levels of 100 million bbl/d by 2022 or early 2023, Pioneer Natural Resources CEO Scott Sheffield said on Dec. 1.
Demand next year is likely to be around 97 million bbl/d, Sheffield said, speaking at the Reuters Future of Oil & Gas 2020 virtual conference. He added the oil industry will "still need some help from OPEC" with supply cuts of 3 million to 5 million bbl/d next year.
Pioneer, one of the largest independent U.S. shale operators, is putting drilling rigs back to work in the Permian Basin oil field, but plans for oil production growth of zero to 5% in 2021 while demand recovers, Sheffield said.
The company will close its $4.5 billion all-stock buyout of Parsley Energy Inc. in the first quarter of the year. Sheffield said he expects "several more" such mergers in the oil industry.
Daniel Rice, former CEO of Rice Energy who now sits on the EQT board, addressed the elephant in the room earlier this month at Hart Energy’s Energy Capital Conference.
Denbury Resources and Penn Virginia mutually agreed to terminate their merger after the $1.7 billion cash-and-stock transaction faced difficult market conditions and shareholder opposition.
Murphy Oil plans to use proceeds from its Malaysia exit to PTTEP for share buybacks as well as funding Eagle Ford Shale and U.S. Gulf of Mexico operations.