Explorers in U.S. oil fields stung by the quick rise and fall in the market last year are expected to move cautiously when crude prices begin to climb again.
Bill Thomas, chief executive at EOG Resources Inc., the largest landholder in Texas’s Eagle Ford shale formation, told attendees at an industry conference in Houston on Wednesday that his company won’t start boosting output the first time oil hits $60 a barrel.
"We’re going to make sure the market is in good shape, it’s balanced, and we’ve got a future," Thomas said. "We don’t want to ramp it up and drive the price of oil down again."
West Texas Intermediate, the U.S. benchmark, swung wildly between a bull and a bear market last year, and the industry followed by adding rigs and then immediately parking them again. The global oil industry slashed more than $100 billion in spending last year to cope with crude prices that are down by more than two thirds since the middle of 2014.Read more by clicking here.
Connect with us on Facebook and Twitter!