As the shale revolution slows, OPEC has become more dominant in the global oil markets. CERAWeek’s top executives claim shareholders face increasing costs and increased demands for cash returns. This could result in higher crude oil prices.
According to American shale producers, record profits were made by the U.S. shale sector following Russia’s invasion in Ukraine. It now faces serious problems that could affect the growth of U.S. supply.
Scott Sheffield is the chief executive of Pioneer Natural Resources, America’s largest independent shale producer. He said that three countries currently hold control over the industry and that they will continue to do so for the next 25 years: Saudi Arabia, United Arab Emirates and Kuwait. (RELATED: Biden Officials Are Not Invited To Saudi-Led Foreign Investment Initiative Conference
Devon Energy chief executive Rick Muncrief said that he is concerned about the possibility for a new price increase as oil balances tighten.
He stated that the U.S. only controls 10% of the global oil markets, while OPEC and Russia have a greater share, giving them more influence. According to the FT, “Opec’s market share will grow from 30% to around 50% today.” “If we don’t act, the world will revert to the 1980s or 1990s.”
The Biden administration has a contradicting policy towards the United States. It also ended leases for oil-and gas drilling on federal lands and stopped construction of Keystone XL.