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Page added on October 15, 2020

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US peak oil output has passed: Oxy CEO


US oil production will not return to its peak output of nearly 13mn b/d following this spring’s Covid-19-related collapse in demand, according to Occidental Petroleum chief executive Vicki Hollub.

US production’s high-water mark came in November 2019 at 12.8mn b/d as US oil exports surged amid a growing global economy. Weekly production hit 13mn b/d as recently as March.

But prices fell sharply in the spring, first as Opec+ countries fought over production share, and then production plummeted as the Covid-19-pandemic spread, leading counties to shutdown schools and businesses and restrict travel. US production stood at about 11mn b/d last week.

“It will be just too difficult to replace the 2mn b/d that we’ve lost and grow beyond that,” Hollub said today at the Energy Intelligence Forum. The next three to four years will see a restoration of some of that production as demand continues to recover, Hollub said.

Global demand fell from about 100mn b/d before the pandemic to about 80mn b/d, but is climbing back to around 94mn b/d, she said. When global demand returns to the 100mn b/d level is not clear, she said, but global supply and demand should be back in balance by the end of 2021.

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One Comment on "US peak oil output has passed: Oxy CEO"

  1. Anonymous on Fri, 16th Oct 2020 5:06 pm 

    If prices stay in the 40s, yeah. If they go above 60? Back to party time. Probably even north of 50 is enough. The resurgence after the 2015-2016 drop, in 2018, showed us that. Shale will retreat with prices are too low. It will grow when prices are too high. It doesn’t “stay dead” unless prices stay low.

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