"International Oil Prices Could Reach $150: Warning from the US Shale Industry"

"Current Drilling Site Production Expected to Peak"
US Shale Oil Production Forecasted to Decline for 3 Consecutive Months

As international oil prices face renewed upward pressure, there is growing attention on predictions from the U.S. shale industry that prices could soar to as high as $150 per barrel (approximately 200,000 KRW).

Doug Roller, CEO of Continental Resources, made this claim during an interview with the U.S. financial media outlet Bloomberg TV on the 25th (local time). Continental Resources is one of the largest shale oil producers in the United States.

Roller’s forecast is based on the prediction that U.S. crude oil production, which plays a key role in the supply of the international oil and gas industry, will eventually reach a 'peak.'

The United States, which produces crude oil, shale oil, and more, is one of the world's largest crude oil producers and plays a significant role in the supply of crude oil that influences international oil prices.
[Image source=AP Yonhap News]

He warned, "Just like competing regions such as Bakken in North Dakota and Eagle Ford in Texas, oil production in the Permian Basin will also eventually peak." The Permian Basin is one of the largest shale oil production areas in the U.S.

Roller added, "If new shale oil exploration does not take place, we will see international oil prices at the level of $120 to $150 per barrel (approximately 160,000 to 200,000 KRW). Without policies encouraging new drilling, stronger upward pressure on oil prices may emerge."

If oil prices reach the $120 to $150 per barrel range, it will inevitably have a negative impact on the entire industry related to oil prices. He strongly warned, "It could shock the entire system."

Currently, international oil prices hover around $90 per barrel (approximately 120,000 KRW). Some predict that prices could reach the $100 per barrel mark (approximately 134,000 KRW). Roller emphasized that even at the $100 per barrel level, there are no plans to significantly increase oil production, stating, "We are investing very cautiously at levels that align with our cash flow."

He explained, "Increasing investment to produce the maximum possible is not how we create value."

According to Bloomberg, U.S. shale oil production reached an all-time high last July but has been declining since. The U.S. government expects shale oil production to decline for three consecutive months through October.

The Biden administration has strengthened regulations on the U.S. oil industry citing climate change response. In this regard, CNN cited data from the American Petroleum Institute (API), pointing out that both the number of new drilling permits and the size of permitted sites have significantly decreased under the Biden administration.