HOUSTON (Reuters) – Only a few years ago, shale CEOs and the Organization of the Petroleum Exporting Countries were in open conflict.
Now, they realize they’re in the same boat and need to row in tandem to keep global crude supply and demand in balance, according to interviews with analysts, executives and investors.
Rise - Crude - Prices - Percent - Year
The recent rise in crude prices – up more than 40 percent in the past year – has lifted profits for producers across the globe, but also threatens to erode demand for fossil fuels at a time when electrification is becoming commonplace.
“We’re getting to a point where a continued rise in the oil price is going to cause major problems for the global economy,” said Amy Meyers Jaffe, director of the program on energy security and climate change at the Council on Foreign Relations.
Issues - Hand - Besides - Output - OPEC
“There are bigger issues at hand besides output that OPEC and shale producers care about.”
OPEC and U.S. representatives have met at least twice this year, with a third high-profile meeting set for Vienna next week. Finding the optimal balance of crude supply and demand will be the hot topic.
Harold - Hamm - Billionaire - Founder - US
Harold Hamm, the billionaire founder of U.S. shale pioneer Continental Resources Inc , is due to address OPEC ministers, along with fellow shale executives Hess Corp CEO John Hess and Pioneer Natural Resource Co Executive Chairman Scott Sheffield.
Hamm and Hess did not respond to requests for comment ahead of the meeting. Sheffield declined to comment.
Dialogue - Discussion - Kind - Collaboration - World
“I wouldn’t take dialogue and discussion as any kind of collaboration. We’re all talking about what does world demand look like for oil,” said U.S. Senator Heidi Heitkamp, a North Dakota Democrat who successfully pushed to lift the U.S. oil export ban in 2015.
Lifting that ban ushered in a sea change in global energy, sending nearly 2 million barrels of U.S. crude to India,...
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