http://signaloil.wpengine.com/wp-content/uploads/2015/10/Signal-Oil-logo-red-300x32.png 0 0 RSS FEED http://signaloil.wpengine.com/wp-content/uploads/2015/10/Signal-Oil-logo-red-300x32.png RSS FEED2018-05-10 04:52:202018-05-10 04:52:20US Shale Producers Will Not Offset Iran Supply Drop, Mark Papa Says
US Shale Producers Will Not Offset Iran Supply Drop, Mark Papa Says
U.S. shale producers will not boost output to offset any global oil squeeze after President Donald Trump abandoned the Iran nuclear deal, one of the industry’s most prominent executives said May 9.
The withdrawal, alongside Trump’s decision to impose the “highest level” of sanctions on Iran, sent Brent and U.S. benchmark oil prices up more than 3% on May 9.
Iran, the third-largest oil producer in OPEC, pumps 3.8 million barrels per day (bbl/d).
U.S. shale producers, which in the past year have increased output by nearly 2 million bbl/d, to about 7 million bbl/d, are not likely to act to fill that void should Iranian exports slip, said Mark Papa, CEO of Centennial Resource Development Inc. (NASDAQ: CDEV).