"Pioneer is rapidly boosting production. But Scott Sheffield, the company’s boss, worries that in a few years he will run out of customers; America has prohibited the export of crude oil since the 1970s. At $100 a barrel, the price of West Texas Intermediate (the most popular benchmark for American oil) is comfortably above the break-even cost of tight oil. But the prospect of a glut has futures pricing it at $20 less in 2018. “There will be a lot less oil-drilling when you take $20 out of everybody’s margin,” says Mr Sheffield."
They just got the timeline wrong. Oh and that Saudis would cut production to allow further growth in US oil production.
SSN Price at posting:
1.3¢ Sentiment: None Disclosure: Not Held
