‘U.S. Production Rebound Will Lead to New Oil Price War’

Date: 17 April 2021 - 20:49

News ID: ۸۹۲۶۹

MOSCOW (RT) - The U.S. oil industry faces a new oil price war if shale production rebounds next year by rising 1 million bpd compared to this year, chief executive at shale giant Pioneer Natural Resources said at BloombergNEF’s annual summit.
Last year, the OPEC+ group broke up their production pact in March after demand started crashing in the pandemic and U.S. crude oil production had hit 13 million bpd in the weeks prior to the start of the pandemic.
"OPEC and Russia were upset that we grew too much,” Scott Sheffield said at the summit. "If we ever start growing again too much, we’re going to have another price war,” the shale executive added.
Sheffield continues to believe — as he did earlier this year when Saudi Arabia surprised the market with an extra cut of 1 million bpd — that U.S. oil production will not surge again because operators are very much aware of the consequences of soaring output and will continue to keep disciplined spending.
"If we grow another million barrels a day next year, we’re going to have another price war in my opinion going into ‘23,” Sheffield told the BloombergNEF summit.