ConocoPhillips: If Oil Prices Fall to $50 per Barrel, the United States Will Reduce Production
Oil production from low-permeability reservoirs will cease to grow by the 2030s unless an innovative method for developing such formations is invented, according to Ryan Lance, Chief Executive Officer of ConocoPhillips.
According to Lance, if the price of oil remains in a comfortable range—between 65 and 75 U.S. dollars per barrel—the United States will be able to achieve modest production growth, reaching over 14 million barrels per day, up from the current 13.3 to 13.4 million barrels per day. However, if prices drop below 60 dollars per barrel, Lance believes that U.S. oil production will level off, and if prices fall to around 50 dollars per barrel, production in the country will begin to decline.
At the same time, Lance cautioned against writing off the shale industry, emphasizing that companies in the sector are actively seeking ways to increase recovery rates from existing fields.
