US Shale Firm CEO Predicts $80-$100 a Barrel of Oil Through 2024
(Reuters) — Oil prices will range between $80 and $100 a barrel this year and next as demand outpaces supply, Scott Sheffield, chief executive officer of top shale firm Pioneer Natural Resources, said on Wednesday, citing output cuts by Saudi Arabia and underinvestment by U.S. producers.
His outlook is lower than the $90-$100 range he had forecast earlier this year. Oil prices rallied in July after Saudi Arabia and Russia, the world's biggest oil exporters, deepened oil output cuts and as China has pledged measures to revive its economic growth.
Global oil inventories will fall through year-end, said Sheffield, who plans to step down in December. Saudi Arabia could extend its 1 million barrel-a-day cut and a soft landing for the U.S. economy could help fuel overall demand, he predicted.
Weak oil prices in recent months have also hurt drilling and completion of new oil wells as U.S. shale producers curb spending. The global oil benchmark was trading at about $83 a barrel and U.S. crude about $79.36 a barrel on Wednesday.
Pioneer said it may end the year flat on average rig count, compared with a previous forecast to add 1-2 rigs a year.
Shares were 2.3% higher at $229.74 on Wednesday afternoon, a day after Pioneer reported a better-than-expected quarterly profit and cut capital spending.
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