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Small gains in U.S. oil production and cuts by some OPEC+ members will limit crude supply in the months ahead and inevitably push up prices, an EOG Resources (NYSE:EOG) executive said Wednesday, according to Reuters.
"We're a short term away from seeing the market tighten even further," EOG (EOG) COO Lloyd Helms reportedly told a J.P. Morgan energy conference. "We are more constructive on where oil prices could go."
U.S. natural gas prices also could be supported this year by fewer drilling rigs in shale gas basins at a time when liquefied natural gas demand is expected to peak, Helms said.
The Energy Information Administration has forecast U.S. oil production growth of just 1.3% to 12.77M bbl/day in 2024, after a 6.1% gain this year.
Helms said EOG (EOG) does not expect to expand activity in the Permian Basin, citing labor and service constraints, saying the company sees flat drilling there while turning more to Ohio's Utica shale and Wyoming's Powder River Basin.
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