Crude oil prices will continue to climb as demand rebounds and supplies remain tight, the head of one of the largest U.S. shale producers said on Aug. 3.
Prices will remain at $100/bbl or more over the next five years, Pioneer Natural Resources CEO Scott Sheffield told investors on a conference call. Pioneer will remain focused in the near term on achieving roughly a 5% production volume growth rate, he added.
“I’m still very optimistic that the oil price is going to continue to march forward, with probably more upside than downside,” Sheffield said.
International Brent futures were trading at about $99/bbl and WTI oil futures in the U.S. were at about $92/bbl on Aug. 3 amid an unexpected 4.5 million-barrel surge last week in U.S. stocks.
OPEC+ members are set to increase oil output by a tiny 100,000 bbl/d from September—the equivalent of 86 seconds of global demand. The small increase has been seen as an insult to U.S. President Joe Biden, who recently went to Saudi Arabia to persuade the producing group to pump more oil to quell high energy prices.
“It was miniscule. They just don’t have the supply,” Sheffield said, pointing to OPEC heavyweights Saudi Arabia and United Arab Emirates.
Recommended Reading
BP’s Kate Thomson Promoted to CFO, Joins Board
2024-02-05 - Before becoming BP’s interim CFO in September 2023, Kate Thomson served as senior vice president of finance for production and operations.
Magnolia Oil & Gas Hikes Quarterly Cash Dividend by 13%
2024-02-05 - Magnolia’s dividend will rise 13% to $0.13 per share, the company said.
TPG Adds Lebovitz as Head of Infrastructure for Climate Investing Platform
2024-02-07 - TPG Rise Climate was launched in 2021 to make investments across asset classes in climate solutions globally.
Air Products Sees $15B Hydrogen, Energy Transition Project Backlog
2024-02-07 - Pennsylvania-headquartered Air Products has eight hydrogen projects underway and is targeting an IRR of more than 10%.
HighPeak Energy Authorizes First Share Buyback Since Founding
2024-02-06 - Along with a $75 million share repurchase program, Midland Basin operator HighPeak Energy’s board also increased its quarterly dividend.