US output recovery will bring about fresh oil price war
Chief executive at shale giant Pioneer Natural Resources stated at BloombergNEF’s yearly summit that the US oil sector confronts a fresh oil price war if shale output recovers in 2022 by increasing 1 million bpd in comparison with the current year.
In 2020, the OPEC+ group ended their output deal during March after demand began collapsing during the coronavirus crisis and US crude oil output had reached 13 million bpd in the weeks before the beginning of the pandemic.
Scott Sheffield stated at the summit: “OPEC and Russia were upset that we grew too much,” adding “if we ever start growing again too much, we’re going to have another price war.”
The shale executive continues to think — as he did previously in the present year when Saudi Arabia blew the market with an additional cut of 1 million bpd — that US oil output will not rise again because operators are very much concerned of the results of rising production and will keep maintaining disciplined expenditure.
Source: Mena FN