Shale Giant Pioneer Explains Why U.S. Drillers Won’t Drill More | OilPrice.com

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Shale Giant Pioneer Explains Why U.S. Drillers Won’t Drill More | OilPrice.com
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“You’ve got to realise: when you produce a 2 per cent return on capital employed, you end up being at the bottom of the S&P 500,” Pioneer Natural Resources’ CEO Scott Sheffield

These investors have been watching for years how shale drillers burn their cash in order to turn the United States in the biggest oil producer in the world. Then they had to watch all this breakdown in 2020 with oil prices dropping below zero for the first time in history, even though the drop was a short one.Now, two years later, things are very different both with oil prices and with shale drillers.

Yet, there are also purely practical constraints as well, as Sheffield noted in his talk with the FT. Oilfield services cost a lot more than they did a couple of years ago and there are equipment shortages.“He was criticising the majors and independents for not growing more.

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