OPEC once again dominates the global oil market as the shale revolution wanes and encounters increasing costs and demands to return cash to shareholders, likely leading to rising crude oil prices, according to top executives in the industry at CERAWeek.
The U.S. shale market recently yielded record profits after Russia invaded Ukraine, but it is now facing serious challenges that will damage the growth of U.S. supply, according to American shale producers who spoke to the Financial Times. This is a dim outlook compared to the past when the shale industry’s efficiency led to the perception of competitiveness with Saudi Arabia, according to the FT.
Scott Sheffield, chief executive of Pioneer Natural Resources, the largest independent U.S. shale company, says three countries are currently in control and will continue to be in control for “the next 25 years” — Saudi Arabia, United Arab Emirates and Kuwait.