U. S. and OPEC energy companies discuss fears of shortage of oil production capacity
2023.03.07 04:32
U. S. and OPEC energy companies discuss fears of shortage of oil production capacity
By Tiffany Smith
Budrigannews.com – An executive who attended a private dinner on the sidelines of a Houston conference on Monday said that energy executives from the United States and high-ranking OPEC officials talked about concerns about a lack of spare oil production capacity.
The dinner with OPEC officials and producers of shale continued a tradition that began approximately five years ago when the two groups were fierce rivals. In recent years, it has been held in the U.S. oil industry capital during the CERAWeek energy conference.
The majority of those present were concerned about the lack of available capacity in the market, Devon Energy (NYSE:) As he left the restaurant, Chief Executive Officer Rick Muncrief told reporters.
He said that strong oil demand and what U.S. shale producers could do to meet it given what shareholders want were other topics discussed.
After a year of record profits for the fossil fuel industry, producers of OPEC and US shale have enjoyed strong global demand for their oil and gas.
As the shale boom that propelled the United States to the top of the world’s oil producers and ate away at OPEC’s market share has slowed, their rivalry has diminished.
OPEC had viewed shale as an unruly force that brought vast new oil supplies to market, reducing its revenue. Relations improved after shale companies agreed to lower spending on capacity expansion and comply with investors’ demands for higher capital returns.
As the Organization of the Petroleum Exporting Countries’ secretary general, Haitham Al Ghais has never attended an event like this one before. In August, he took on the role.
Chesapeake Energy Corp. (NYSE:) was among the high-ranking executives from U.S. businesses that Reuters reporters saw attend the dinner on Monday. Pioneer Natural Resources (NYSE:) CEO Nick Dell’Osso CEO of Hess Corporation, Scott Sheffield (NYSE:) Occidental Petroleum’s (NYSE:) CEO John Hess CEO of Talos Energy, Vicky Hollub (NYSE:) Devon’s Muncrief and CEO Tim Duncan.
The conflict in Ukraine has disrupted global oil and gas flows and enriched both producer groups, making the event come at a turbulent time for global markets.
Oil production in the United States is expected to rise by less than 600,000 barrels per day (bpd) in 2023, compared to around 2 million bpd in 2018.
In the meantime, OPEC has agreed to limit prices by reducing member production by 2 million barrels per day.
At the conference last year, shortly after Russia invaded Ukraine, U.S. officials presented the late former Secretary General Mohammad Barkindo with a bottle of “Genuine Barnett Shale,” a tribute to the region that sparked the U.S. shale revolution, as a sign of how the animosity has subsided.
In an interview with Reuters on Monday, Pioneer’s Sheffield stated, “I was a good friend of Secretary Barkindo.” Since I haven’t met the current Secretary, I have no idea how things will turn out.”
Less OPEC authorities are available at the current year’s yearly CERAWeek gathering, with priests from key nations, including Saudi Arabia and Iraq, missing from the participant list.
