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U.S. oil production could reach 14M barrels/day, Pioneer CEO says

Technological improvements will allow energy companies to scrape more crude out of the ground and drive U.S. oil production as high as 14M bbl/day, Pioneer Natural Resources (NYSE:PXD) CEO Scott Sheffield says.

The industry may not discover any more elephant fields, but operators will continue to find new opportunities in conventional plays, the CEO says, noting the industry is pursuing new techniques for boosting the recovery rate at wells up from the 2%-3% common today.

Only lower oil prices can stop the upward march in U.S. production, Sheffield adds, warning that a price collapse for domestic West Texas Intermediate crude would cause “a tremendous turndown.”


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Comments (7)
  • MEKhoury
    , contributor
    Comments (330) | Send Message
    'turndown for what'
    7 Aug 2014, 12:09 PM Reply Like
  • Fracjob
    , contributor
    Comments (1675) | Send Message
    If you think that domestic production disruption will lead to lower long term prices, you are sadly mistaken.
    7 Aug 2014, 12:16 PM Reply Like
  • 11146471
    , contributor
    Comments (1323) | Send Message
    Why in hell would a WTI price decrease ever incur? Have you following what is happening in the oil producing regions of the world lately?


    Look at Kurdistan with ISIS fanatics, Libya which is plunging further in anarchy, Russia which is marginalized by western block, Africa with more fanatics, anarchy and Ebola virus etc. etc.


    To be honest I see oil (W.T.I.) prices over 100$ pretty soon. I would say that 120$ is a pretty viable and sustainable scenario.
    7 Aug 2014, 05:26 PM Reply Like
  • PalmDesertRat
    , contributor
    Comments (3585) | Send Message
    Theoretically,if the technological improvements mentioned in the article are so wonderful as to bring down the marginal cost of production the price could fall. But is that likely?
    7 Aug 2014, 05:28 PM Reply Like
  • 11146471
    , contributor
    Comments (1323) | Send Message
    In any case the articles implies that these technological improvements will be only marginal, since no major onshore discovery is expected.
    7 Aug 2014, 05:32 PM Reply Like
  • Peregrinus
    , contributor
    Comments (124) | Send Message
    The Saudis could lower their price to $20/bbl which would cause a world-wide turndown in oil prices. However, Saudi Arabia needs $100/bbl just to pay their bills. Based on US productions gains, oil prices will moderate but then be stimulated by greater demand. For example those guys driving trucks in East Texas and North Dakota will buy their wives (or girl friends) big gas guzzling SUVs. Right now there are a lot of people in this country that had a car in 2007 but can't afford a car anymore.
    7 Aug 2014, 09:00 PM Reply Like
  • Zealot
    , contributor
    Comments (715) | Send Message
    Give me a break. With USA NOW exporting oil products(refined) and the world using close to 90 million barrels day and quickly approaching 100 million barrels day, that is ONE BILLION BARRELS every ten days or approaching 40 Billion barrels of oil worldwide per yr( now at about 35-36 Billion barrels/yr). Do a Rip van Winkle wake up and in 10-20 yrs 14 million barrels/day of US oil production still would only be a bit less than 50% of what USA uses. Cheap oil now great numbers of trucks SUV's etc etc. People bye and large are stupid when it comes to energy, they will fiddle while Rome burns.
    27 Sep 2014, 06:35 AM Reply Like
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