Hess CEO Says OPEC 'Back in the Driver's Seat' as U.S. Shale Growth Slows

[Scott]

 

The Organization of the Petroleum Exporting Countries (OPEC) is "back in the driver's seat" as the top swing producer amid slowing U.S. shale growth, Hess Corp Chief Executive Officer John Hess said on Thursday at an investor conference in Miami, Florida.

 

Hess anticipates U.S. oil production will hit around 13 million barrels per day in the next few years and then plateau. U.S. production growth has been slower than anticipated at the beginning of this year due to investor pressure to focus on returns over growth, along with inflation and inventory depletion.

 

U.S. shale executives in recent weeks have lamented lower-than-expected productivity on certain wells, and warned that output growth in the prolific shale patch is poised to slow.

 

https://money.usnews.com/investing/news/articles/2022-11-17/hess-ceo-says-opec-back-in-drivers-seat-as-u-s-shale-growth-slows

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Not only is there a natural limiit on what can be pumped, but banks and shareholders have made it very clear that they don't want oil and gas companies making investments based on the supposition of high prices for oil and gas in the future. That kind of optimistic thinking financially wiped out a lot of frackers. A huge amount of capital was incinerated by the fracking industry.

Not that this will stop those who don't know from blaming environmentalists and Joe Biden.

Edited November 25, 2022 by placeholder