Frac ban: Pioneer CEO says fracking ban would cut US oil output by 60%

[ceo_energemsier + 1,818]

Pioneer CEO says fracking ban would cut US oil output by 60%

 

 

US oil production would sink back to 2008 levels of 5 million b/d under a fracking ban proposed by several leading Democratic presidential candidates, Scott Sheffield, CEO of Permian driller Pioneer Natural Resources, said Thursday.

 

"It's a shock. I don't think they understand what will happen," Sheffield said during an interview with S&P Global Platts on the sidelines of an event at the Center for Strategic and International Studies in Washington.

"We're at 12.4 million b/d now, and the decline rate is about 80% in the first year of a typical horizontal well in the Permian Basin," he added. "So can you imagine if we shut all of the rigs down to zero, both in oil and gas?"

Sheffield said the US would need to import 7 million-8 million b/d of oil from the Middle East and would lose up to 10% in gross domestic product if the US drilling sector collapses.

"We'll be sending thousands of troops back to the Middle East again every time there's a skirmish," he said. "We'll lose hundreds of thousands of jobs."

Democratic presidential contenders Elizabeth Warren, Bernie Sanders and Kamala Harris have taken aim at US oil and gas producers as part of their plans to combat climate change.

However, analysts see any presidential fracking ban on private lands hitting legal challenges unless Democrats also take control of the Senate and hold their majority in the House of Representatives.

"On the first day as president, I will sign an executive order that puts a total moratorium on all new fossil fuel leases for drilling offshore and on public lands," Warren tweeted on September 6. "And I will ban fracking -- everywhere."

Rapidan Energy Group estimates US shale production would plunge by more than 3 million b/d within a year of implementing such a ban. It looked at a scenario of Congress passing legislation in summer 2021, with a ban taking effect January 1, 2022.

 

[cbrasher1 + 272]

and these idiots screamed and cried and took pity when they had thr government shutdown for the few thousand employees that were out of work for a month or so, but deem it responsible to put a million or more(drillers, frac companies, service companies, suppliers, light plant and portajohn suppliers, etc.) out of work?? 🙄🙄

 

[James Regan + 1,776]

11 hours ago, ceo_energemsier said:

Sheffield said the US would need to import 7 million-8 million b/d of oil from the Middle East and would lose up to 10% in gross domestic product if the US drilling sector collapses.

"We'll be sending thousands of troops back to the Middle East again every time there's a skirmish," he said. "We'll lose hundreds of thousands of jobs."

 

8 hours ago, cbrasher1 said:

and these idiots screamed and cried and took pity when they had thr government shutdown for the few thousand employees that were out of work for a month or so, but deem it responsible to put a million or more(drillers, frac companies, service companies, suppliers, light plant and portajohn suppliers, etc.) out of work?? 🙄🙄

This is double edged sword, the US is obviously doing very well from Shale Oil and land plays, however all the Premium Capital Equipment onboard any offshore drilling unit id built in the USA, Norway also provides and good portion, but the majority comes from the likes of GE, Cameron, Vetco (NOV) etc etc. Lets not also forget the drilling Contractors from the USA Transocean, Rowan/Ensco (Valaris) Seadrill USA, Diamond Offshore etc who have invested fortunes and now have units waiting to be cut up.

How many jobs have been lost from the offshore market and the service companies who supply them, if and when the offshore markets kicks back in, who will run these rigs, hands from the shale play definitely not its a different ball game. No disrespect to the hard working hands on land and same goes for the offshore guys any transition from land to sea or vice versa is not so simple.

We are systematically letting the government destroy and Industry thats sustained the USA and the ROTW for decades, I dont get it, really am I that dumb that I'm missing something? (answers only by postcards please)

[Tom Nolan + 2,441]

When I hear about some of these politically motivated statements, I always wonder which vested interests will benefit.  Some of the Democratic statements talk about only restricting fracking from Federal lands.  However, there is a lot of privately held mineral rights which would benefit if Federal lands were outlawed.  I own over 100 rights in the Scoop/Stack.  It seems to me, that anytime the government enacts a new regulation, certain vested interests benefit.

If you have never watched “How Big Oil Conquered the World”, it is well worth the time investment.  https://www.youtube.com/watch?v=ySnk-f2ThpE  Transcripts and sourced documents are in the footnotes.