Entering text into the input field will update the search result below

The world is entering a period of oil scarcity, Halliburton CEO says

Dec. 06, 2021 2:35 PM ETHalliburton Company (HAL)XOM, TTE, CVX, ZPTAF, ARMCO, SGY:CABy: Carl Surran, SA News Editor261 Comments

Working Pumpjacks On Sunset

imaginima/E+ via Getty Images

  • The world's underinvestment in fossil fuel development since 2014 is leading to an era of scarcity for global oil markets, Halliburton (HAL +3.8%) CEO Jeff Miller told the World Petroleum Congress today in Houston.
  • "For the

Recommended For You

Comments (261)

Have a tip? Submit confidentially to our News team. Found a factual error? Report here.

I believe him……nothing lasts forever.
dlvvlv profile picture
@del norte Only until we cycle around to the next time....
for the last several years OPEX+ countries have mostly been arguing who gets to pump more. Hardly an area of scarcity. It's very likely that deep-sea drilling and other very expensive methods will turn uneconomic and will remain so, as the cheaper sources of oil will suffice to supply the world for as long as oil is still needed.
The Energy Realist profile picture
@les2005 I realize it is typo, but you actually created a very nice pun that sums it all! )) OPEC have indeed been spending mostly OPEX last years but much behind on CAPEX. Until "OPEX" countries become more "CAPEX", spare capacity will be tight. And the capex will take several years to manifest itself in production. API has great thought leadership on this topic
@The Energy Realist In 2022 the US will again be the largest producer of crude becoming an even larger exporter of crude products and taking market share from OPEC+.
@The Energy Realist
Some Opec members actually did spend on Capex while many others are struggling even to meet their current quotas. As a result, some adjustments were made this summer and a new Opec+ agreement signed.
It wasn’t easy to reach a compromise and put all parties together. For that reason I believe that OPEC+ will stick to the current agreement adding a maximum of 400k bbl/d. It will not open a new can of worms, just because someone is asking. After that E&P investors will probably take another look at supply and demand fundamentals. Many holder will probably take profits. Good profits, I hope. ;-)
What you will get is starvation caused by the stupid.
@d0d0ramefasolated0 lol, re: AOC, let them eat bugs
DeepDiveStocks profile picture
Oil CEO says there’s an oil shortage. I don’t need to study the oil markets to know there is no shortage.
jimidean profile picture
@DeepDiveStocks what markets do you study to know there is no oil shortage?
@DeepDiveStocks There is a worldwide glut of crude reserves and unused production.
When you keep the supply limited, of course it is. Tons of oil out there but we're letting OPEC decide instead of the U.S.
jimidean profile picture
@Eauz where are all there unknown tons of Oil?
@Eauz Shortly, as OPEC+ members run out of cash reserves the cheating on quota will begin.
@jimidean 3rd countries.
Plant a tree for each barrel of oil.

Biden needs to mandate every American plants a tree by Arbor Day or get a tax penalty.
@Phil Dumfee I’ve planted my fair share and this is a better idea than most liberals can come up with but one for each barrel of oil is simply impossible. I believe we have more trees now than in the last 60 years.
@Phil Dumfee I have planted many hundreds!
polecat profile picture
@xomstock we have more trees now vs. 120 years ago.
Moats and Income profile picture
OXY is the easy double or more as they print money with sustained prices >= $60

Any higher price is just a faster path upward…
From bust to boom, the cycle never ends. Question is how long this oil boom will last. I am betting it will last 3 years at a minimum. HAL and SLB should be in everyone's portfolio right now.
@NorthZorro - Try 10 years minimum. At the most recent oil and gas conference in Houston, Halliburton Chief Executive Jeff Miller stated:
"The world is headed for a period of energy scarcity following years of underinvestment. It could take about a decade to ease the supply crunch"
06 Dec. 2021
PlumberMD profile picture
@hdnw 😂Long Live NASCAR! And College Football!
@hdnw Lets Go
Like I say, oil and gas are still the king for a long, long time. Those greenies are all hypocrites who are flying private jets for fun.
@zip6485 Agreed. Whatever they are is illogical, destructive and un-American. They need to stand up and tell the real the big polluters like China, India and others to DO THEIR PART.
@User 36622866 They are doing their part, in 2020 China built 130+ GW of renewable capacity, more than the rest of the world combined. The US, like 30 GW.

But yeah, just stick with those years old tired talking points.
User 47429802 profile picture

China also added 38 GW of coal capacity in 2020.

"Including decommissions, China’s coal-fired fleet capacity rose by a net 29.8 GW in 2020, even as the rest of the world made cuts of 17.2 GW, according to research released on Wednesday by Global Energy Monitor (GEM), a U.S. think tank, and the Helsinki-based Centre for Research on Energy and Clean Air (CREA)."
The Energy Realist profile picture
Bullish oil headline from SA for a change, nice!
@The Energy Realist As much as I like confirmation bias, that has me a bit nervous.
Solojif1 profile picture
Friendly reminder to the “greenies”. You need petroleum to mine raw materials, ship, and produce every last nut and bolt in your “green” energy.
Until a wind mill produces plastics oil will be around.
@Solojif1 Don't forget their private planes, how else would they get from Green award ceremony to Green award ceremony.
XblackdogX profile picture
Nobody gave a damn about the oil and gas producers when nat gas was $2. Now they are finally getting a decent return on massive investments and they villainize the energy companies.
Pierre Rossouw profile picture
@XblackdogX The revenues and the business and volumes of fossil fuels continues to grow year on year, despite the global efforts of the green community to replace these sources. It looks like the positive trend in fossil fuels is going to continue to grow for at least twenty years, before any downturn.

Because the green economy is so piddling small. It just doesn't have the size necessary for the global demand.

If your interest is investing in carbon then it seems that this will be safe for a long time to come. I'm not taking sides on morals or anything, just saying about some investment concept.
@XblackdogX people are finally starting to understand that energy matters and it’s not something that just automatically comes out of an outlet or pipe.

Sounds like Bloomberg saying, all you have to do is throw a seed in the ground and voila, food. Easy as punch.
polecat profile picture
I invest in Big Oil, Big Tobacco, Big Pharma.
@polecat I can understand big oil and pharma but not tobacco (unless you were being facetious). If not, why tobacco?
polecat profile picture
@OrangeKrush not to go into history, just look at the dividend growth.
Rohl profile picture
07 Dec. 2021
@polecat British American Tobacco best now.
XblackdogX profile picture
That's what happens when you let Greta and AOC call the shots.
@XblackdogX "The world's underinvestment in fossil fuel development since 2014"

Hmm, maybe its me but AOC was unknown in 2014. And hard to call one congress person the shot caller. But if they scare you that much, I guess run with that sentiment.
@martyr1777 Then you have to explain to us why Brandon would shut down the Keystone pipeline in his first week... (any energy logic or reason behind this decision, or were AOC and the GND greenies calling the shots for Brandon?)
@Stillhunter888 Stopping construction of KXL has had no impact.

Alberta, the area KXL would have moved oil from. Has increased production now vs when KXL was still being built.

It was never needed, it was just desired for better margins. But they are still more then profitable enough to increase production.


If you ever actually looked at real data instead is just listening to propaganda you might learn something.
jerome681 profile picture
It's the transition from fossil fuels to renewable energies. I believe the nations who fall behind will fail. Invest properly!!!
@jerome681 might want to tell europe that. spent trillions for renewables and now begging russia for nat gas or they're freeze to death...which is strange since the earth is warming and winter/snow shouldn't exist anymore
@Finding Your Retirement

Schadenfreude on the greenies.

Ask, and you shall receive.
Vision is one thing; reality, another.
@SCOTCHYSCOTCHSCOTCH the Renaissance Man is long dead. With him reason and ingenuity died. Replaced by visions, mostly substance-enhanced.
edaskew profile picture
...and he would be correct, so invest accordingly.
New drug scarcity will follow the same path as O&G - politicians crushing drug pipelines with higher taxes and low mandated prices will result in fewer new medical discoveries as less is invested in product development. If you want less of something you tax it. If you want more of something you subsidize it.
edaskew profile picture
@SmokeyJoe50 Naw, they know better. They're just blowing smoke. The Dems are the largest holders of PFE, MRNA, etc.
ckarabin profile picture
@edaskew Can you point me to your evidence on this, that is if you have any?
edaskew profile picture
@ckarabin No, I don't have any evidence. I'd be surprised if these extremely wealthy individuals own no stock. I'd be surprised if they would shaft themselves as shareholders.
eastberks44 profile picture
In the absence of a globally agreed carbon price, a high price for crude, to which many other energy prices are indexed, is exactly what we need to drive the transition to clean energy. We lived with $100 oil for several years without the sky falling in, and it was just enough to get EV and biofuel development going. $120 just about keeps up with retail price inflation since then. $150 would be in line with the improvement in energy efficiency/intensity of the economy. It would take $175-200 to really hurt.
@Snake Oil Pussy $200 oil won't hurt everyone as much as this nonsense forced energy transition will.
Slade_01 profile picture
@Titiss Ask the British and German people about electricity cost inflation due to green without any real plan:

@911Slade Not just Germans. Electricity has one common exchange for whole Europe, so the pain is felt even in other states like France, Belgium, Netherland, Czech Republic, Slovakia, Austria etc. Even outside of EU, as rules of connected networks and common exchange stand even for Norway and UK.
Yep, this is how you know Obama is the puppeteer.
To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.