America’s oil supply problem is worse than most predictions, Ezra Yacob, president of EOG Resources Inc., told analysts during a third-quarter earnings call.
Oil production in the United States will maintain a low growth rate in 2023, he said.
The number of oil rigs, frac spreads, and workers indicated a low growth rate in the near future, he said.
Also, fewer companies have the capacity to produce oil after the pandemic and the companies are more cautious about investing more in this sector.
“I do think coming out of the pandemic, we’ve had a consolidation across the industry. … You’ve been left with less companies, and those companies that have the size, the scale, balance sheets, things of that nature to be able to continue to drill and operate,” he said. “And the majority of those companies are drilling and investing in a way that’s more disciplined than what was in favor prior to the pandemic.”…