The CEO of Pioneer Natural Resources, Scott Sheffield, has predicted that the Organization of the Petroleum Exporting Countries (OPEC) will cut oil production again.

Sheffield made the prediction at a Goldman Sachs conference in Miami on Thursday, stating that Saudi Arabia will not allow Brent oil prices to remain around $75 per barrel. He also believes that oil futures will continue to be in backwardation due to a lack of liquidity in the market and a lack of hedging activity.

Sheffield predicts that oil prices will stay at around $80 per barrel, with the potential to rise to $150. In the US, Sheffield predicts that production in the Permian Basin, the most productive shale region in the country, will eventually reach 7 million barrels per day, but will then plateau. BMO Capital Markets has reported that over two-thirds of premium land in the Permian has already been drilled, and research firm Enverus has found that US shale, largely from the Permian, has provided 90% of the growth in US oil production in the past decade.

This slowdown in US crude oil production and the potential for US shale to no longer quickly respond to market changes has reportedly emboldened OPEC.

Free Speech and Alternative Media are under attack by the Deep State. Real News Cast needs reader support to survive. 

Every dollar helps. Contributions help keep the site active and help support the author (and his medical bills)

Please Contribute via  GoGetFunding