Pandemic Helps Oil Cartel Consolidate Market

Kevin Crowley, David Wethe, and Sheela Tobben have an interesting story out on Bloomberg this weekend about how the pandemic has killed U.S. shale oil producers and consolidated control of global oil markets in the hands of OPEC:

“In the future, certainly we believe OPEC will be the swing producer — really, totally in control of oil prices. We don’t want to put OPEC in a situation where they feel threatened like we’re taking market share while they’re propping up oil prices.”

Bill Thomas, CEO of EOG Resources Inc., the biggest independent shale producer by market value

Yes, we wouldn’t want the cartel to feel threatened. They’ve got enough to worry about with the whole electric vehicle thing.

“I see no more growth until 2022, 2023, and it will be very, very light in regard to the U.S. shale industry ever growing again,”  Pioneer CEO Scott Sheffield, who’ll run the fourth-largest shale operation in the country after his company completes the takeover of Parsley Energy Inc., said in an interview.



Read the full story at Bloomberg

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