America’s shale producers will keep output in check even as global crude oil prices near $70 a barrel, Ovintiv Inc. Chief Executive Officer Doug Suttles said in an interview with Bloomberg Television.
Explorers are focused on low growth, strong operating performance and returning cash to shareholders, Suttles said. Ovintiv is prioritizing paying down debt and maintaining its dividend, he said.
Private operators’ ability to weigh on oil prices by ramping up production is limited after recent tie-ups with publicly traded companies, Suttles said. While closely held producers have more influence on the natural gas market, “it’s a little bit of a concern, not a big one,” he said.
European natural gas prices have bounced impressively from the region of the trend mean and are quickly approaching the highs of the last decade. That is likely to encourage more sea-borne gas into the market which is contributing the US prices bouncing impressively from the trend mean.Click HERE to subscribe to Fuller Treacy Money Back to top