The U.S. shale oil industry can maintain flat output if oil prices stay at $50 per barrel, but a price of $60-$80 per barrel is needed to invest in long-cycle projects such as deep-water, the chief executive of oil firm Hess Corp said.
“Because of operational efficiencies and productivity the industry needs $50 (per barrel) to hold shale production flat … Our company and others have reduced drilling time from rig to rig from 30 days two years ago to 15 days,” John Hess told the Oil & Money conference on Tuesday.
Meanwhile Exxon CEO Rex Tillerson, told the conference in central London that he did not believe that more steep declines in US shale production were on the way. “It is difficult for me to see a big supply press out there,” he said. “It is difficult for me to see a big price blowout.
“I don’t necessarily have the view that we are setting ourselves up for a big crunch within the next three, four, five years.”