Sector News

Shell Chief says US shale producers under pressure from Saudi Arabia

July 7, 2015
News
(Reuters) – OPEC’s decision, led by Saudi Arabia, to not cut oil production has put pressure on US shale gas producers which in turn has put brakes on America’s energy boom, the chief executive of Royal Dutch Shell Plc said in an interview with the Financial Times published on Wednesday.
 
Ben van Beurden said in an interview that OPEC’s decision in the face of soaring US output and weaker-than-expected demand had sent a strong signal that Riyadh would not “underwrite the price” by utilizing its supplies to balance the market.
 
He stopped short of predicting a sharp fall in US output and said efforts by companies to cut costs and improve efficiency meant production would likely remain at current levels for a while.
 
OPEC at a meeting on June 5 kept its policy unchanged amid signs the near-halving of oil prices since June 2014 was boosting demand and dampening the US shale boom.
 

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