June 11, 2023 – Oil Price
Pioneer Sees $70-$100 Oil As Supply Growth Remains Constrained
By: Tsvetana Paraskova
Oil prices are set to rise later this year and trade in the $70-$100 range over the next three to five years as supply growth remains limited and OPEC+ continues to restrict output, according to a top executive at the largest pure-play U.S. shale producer, Pioneer Natural Resources.
Higher labor and material costs are slowing U.S. shale production growth, Pioneers's Executive Vice President Beth McDonald told Reuters at RBN Energy's crude export conference in Houston this week. In addition, shale investors want more returns and a limit on spending, McDonald added.
Higher costs are constraining production growth and eating into margins despite the fact that oil prices haven't moved lower than $70 per barrel for an extended period of time over the past year and a half.
Read the full article here: https://oilprice.com/Energy/Crude-Oil/Pioneer-Sees-70-100-Oil-As-Supply-Growth-Remains-Constrained.html