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Pioneer's Sheffield said most of public small/midsize Oil Companies will be gone by 2021 if Trump doesn't do something. He threatened Trump will lose oil states if he does nothing.

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(edited)

Sheffield said Exxon controls  the American Petroleum Institute (API) and Exxon wants the API to do nothing.  He stated this is because EXXON wants to scoop up all the scraps, all the reserves.  Quite an accusation.

He said Marathon doesn't want to reduce production because they will go bankrupt if they can't continue to produce. 

Sheffield says there are 74 public independent  oil companies in the U.S.  amd there will only be 10 U.S. oil companies left by 2021.

Sheffield said the Majors are on the side of OPEC and Russia !

Really , he said that !

When asked , "doesn't the Shale Industry need consolidation" he responded consolidation won't happen because everyone will have too much debt.  Not true.  The strong can get financing.  Can't beat today's interest rates. 

What do you think ? 

I say consolidation was needed.  It is needed.  This price crash changes the game , but not the fact consolidation needs to take place. 

Sheffield then said many oil companies will soon look like Chesepeake Oil.   I'm sure Chesapeake doesn't appreciate that slight. Shouldn't trash a fellow shale producer. 

Uprising in the U.S. oil Industry.  Can't we just get along.

Sheffield, probably not too smart to threaten Trump reelection in public. Better to do quietly thru back channels. 

Sheff why not let Harry Hamm handle this.  The Prez takes his calls.  You're hurting the cause.

Sheffield wants an agreement stipulating OPEC + Russia + U.S.  stop production until virus crisis ends.  

That's not feasible .

https://www.cnbc.com/video/2020/03/26/pioneer-natural-resources-ceo-warns-independent-oil-companies-could-go-bankrupt-if-production-continues-amid-coronavirus.html

NOTE: SHEFFIELD'S PIONEER IS IN A DIFFERENT MORE DIFFICULT POSITION THAN MOST OTHER SHALE PRODUCERS.  MOST ALL OF HIS COMPANY'S OIL IS EXPORTED.  SO MORE THAN MANY OTHER SHALE PRODUCERS HE IS COMPETING WITH SAUDI/OPEC AND RUSSIA FOR FOREIGN BUYERS.   

.  .   .   HE HAS TO STOP MOST OF HIS PRODUCTION .  .  

.   .   SO HE WANTS EVERYONE ELSE TO DO THE SAME.

SHEFFIELD HAS AN AGENDA

Oil prices will come back to the $50s again, but not until after the buildup in storage comes back down.

A lot of hurt between now and then.  

 

Edited by BLA

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