(skip)
The chief executive of Pioneer Natural Resources, Scott Sheffield, said that the Permian basin is “going to slow down significantly over the next several years,” and he noted on the company’s latest earnings call that the company is also acting with more restraint because of pressure from shareholders not to pursue unprofitable growth. “I’ve lowered my targets and my annual targets, a lot of it has to do with…to start with the free cash flow model that public independents are adopting,” Sheffield said.
It has taken longer than I thought but the financial markets are awakening to the fact that the US shale miracle is coming to an end. It was just another in a long series of bubbles that the US FED has created via its manipulation of interest rates.
All that will be left is a lot of broken dreams, ghost towns, and around 300-400 billion in debt that cannot be repaid.
The demand for oil will continue to grow. If shale slows down the required oil has to come forward. Thi is why I am bullish long term on offshore oil.