Shale CEO on US Oil Output, ”The economics wouldn’t support adding rigs [in 2021]”

One of the top producers in America’s shale patch doesn’t see drilling picking up significantly even after this week’s surprise Saudi pledge to curb production sent prices surging.

“I really don’t see much increase in the Permian Basin or the U.S. shale over the next several years,” said Scott Sheffield, chief executive officer of Pioneer Natural Resources Co.

U.S. oil output is expected to remain roughly flat at about 11 million barrels a day for the next several years, Sheffield said Wednesday in an investor webcast hosted by Goldman Sachs Group Inc. Meanwhile, two of the nation’s biggest shale regions — North Dakota’s Bakken and the Eagle Ford in Texas — may never see growth again, the CEO said.

Although the U.S. crude benchmark jumped above $50 a barrel this week for the first time since February after Saudi Arabia said it will cut output in the next two months, Sheffield said that Pioneer’s current production plans are unchanged.

Saudis Take Charge of Oil Market With Surprise Output Cut

“I never anticipate growing above 5% under any conditions,” Sheffield said. “Even if oil went to $100 a barrel and the world was short of supply,”the economics wouldn’t support adding rigs because service costs would cut into margins, he said.

The CEO predicted more industry consolidation could occur this year if oil stays above $50 a barrel, allowing companies to improve balance sheets.

While Pioneer is focused on completing its recent acquisition of Parsley Energy Inc., the door isn’t closed to other acquisition opportunities in the Permian Basin, he said. The company had considered buying closely-held Endeavor Energy Resources LP but decided a deal couldn’t be done.

“Anything else we would look at after bringing in Parsley has got to be double-digit accretion that’s got to be in the Permian Basin,” he said. “The chances of doing deals like that are slim.”

© 2021 Bloomberg L.P.

Follow us on social media for the latest updates in B2B!

Image

Latest

college
Gamifying College Readiness: How Loper Makes the Enrollment Journey More Engaging!
October 16, 2025

High schoolers are overwhelmed — and not just by homework. The path to college can feel like a maze of forms, essays, and deadlines, with little guidance on where to begin. A recent survey found that nearly three-quarters of students describe the college application process as “difficult.” For many, that difficulty isn’t academic; it’s…

Read More
Image
How Polygon’s Smart Moisture Control System Protected a Mass Timber Student Housing Project
October 16, 2025

Amid the rise of sustainable architecture, mass timber has become a powerful symbol of progress — a material that marries renewable design with modern efficiency. Yet, in the damp climate of Vancouver, BC, sustainability meets its match: moisture. Managing humidity levels in large-scale wood construction isn’t just a matter of comfort; it’s about protecting structural…

Read More
Classroom air quality and student performance
The Hidden Factor Shaping Student Success: Classroom Air Quality
October 15, 2025

By Dan Walsh, VP & GM at AAA Home Services, and Christine Willing, CEO of Think Happy Live Healthy. Why Air Quality Matters in Schools When we think about improving schools, conversations often center on curriculum, technology, or staffing. But there’s a silent, invisible factor that profoundly influences student health, behavior, and learning outcomes: the…

Read More
Chase Harris
Faith, Fatherhood, and Fortitude: Inside Chase Harris’ Mission to Make Accessibility Possible for Every Child
October 15, 2025

Chase Harris is a father, husband, entrepreneur, and all-around force of light. Alongside his wife, Carly, and their son, Cash, he has inspired millions online through messages of resilience, faith, and family. Their story is one of turning adversity into action — and hardship into hope. “We knew early on that Cash had this special…

Read More