By Kevin Crowley on the 04/07/2021
Oxy drilling crew at work in the Permian Basin
HOUSTON (Bloomberg) – Occidental Petroleum Corp. praised OPEC and its allies for managing the crude oil markets following the historic crash last year, and said the US shale industry is grateful for its efforts.
“They handled it brilliantly the way they did it,” Chief Executive Officer Vicki Hollub said at a conference hosted by the Texas Association of Independent Producers and Royalty Owners on Tuesday. “Every American oil and gas company appreciates their efforts.”
OPEC + and the US shale fields have been rivals for much of the past decade, as American rapid growth has eaten away the cartel’s share of the oil market and its ability to control it. But the United States has lost about 2 million barrels a day, or 15% of its production, over the past year, and future growth is seriously hampered by producers ‘limited capital access and shareholders’ demands for cash back when production increases.
Hollub says the US will need “too much investment” to get back to its peak of 13 million barrels a day in the first quarter of 2020. Thus, Hollub believes that OPEC will return some of its cut barrels, but not enough to exceed global demand in the second half of the year.
“They are trying to get back to a supply and demand situation,” Hollub said. “A lot of countries around the world need $ 60, 70 or 80 to break even, and so ultimately I think we’ll hit $ 70 or more in 2022.”
Brent crude this year has risen in price by about 20% and exceeded $ 62 per barrel.
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Crude Oil May 21 
