Failure to lift U.S. oil export ban may cause big drilling drop, Pioneer CEO says

|About: Pioneer Natural Resources C... (PXD)|By:, SA News Editor

Failure to allow U.S. crude oil exports could result in a big drop in the U.S. drilling rig market, Pioneer Natural Resources (PXD) CEO Scott Sheffield says.

The CEO also says a predicted oversupply of crude oil from the sharp and continuing production rise from prolific shale and unconventional basins could also result in a more than $30/bbl price differential for U.S. crudes to Brent.

The rig count would drop quickly if WTI, which now hovers near $100/bbl, were to drop to $70, Sheffield says; a rig drop might start with marginal plays, but "eventually every play" would shut.