Capital discipline from shale producers in the United States is likely to hold this year and through the next, but it could be difficult for companies to resist the temptation to grow production volumes beyond that, Raoul LeBlanc, vice president of North American unconventionals at HIS Markit, said during CERAWeek, as reported by Reuters.
“At any given price growth will be less than in years past but if you get into the $70-$75 per barrel oil range, you can both return money to investors and have strong growth ... so there is a point at which the temptation becomes too strong,” LeBlanc said.
Separately, about 1.5 million to 2 million barrels per day of oil supply could return to market over a couple of months if sanctions on Iran are removed, IHS Markit’s Aaron Brady said.
Reporting by Devika Krishna Kumar and Stephanie Kelly in New York; Editing by Chris Reese
