Only a few years ago, shale CEOs and the Organization of the Petroleum Exporting Countries were in open conflict.
Now, they realise they’re in the same boat and need to row in tandem to keep global crude supply and demand in balance, according to interviews with analysts, executives and investors.
The recent rise in crude prices LCOc1CLc1 - up more than 40 percent in the past year - has lifted profits for producers across the globe, but also threatens to erode demand for fossil fuels at a time when electrification is becoming commonplace.
Harold Hamm, the billionaire founder of U.S. shale pioneer Continental Resources Inc (CLR.N), is due to address OPEC ministers, along with fellow shale executives Hess Corp (HES.N) CEO John Hess and Pioneer Natural Resource Co (PXD.N) Executive Chairman Scott Sheffield.
Lifting that ban ushered in a sea change in global energy, sending nearly 2 million barrels of U.S. crude to India, China and other markets historically dominated by OPEC and forcing the group and its American rivals to be more conciliatory.
Hamm, who called OPEC a “toothless tiger” in 2014, has begun encouraging fellow shale companies to focus more on profitability and less on profligate production. Last month, Hamm addressed a Saudi Aramco board meeting in Houston.
It was a change in tone for Hamm, who in 2011 erected a granite monument on the windswept plains of North Dakota that boasted of the rising clout of U.S. oil production and the nation’s ability to supply its own energy.
Now, they realise they’re in the same boat and need to row in tandem to keep global crude supply and demand in balance, according to interviews with analysts, executives and investors.
The recent rise in crude prices LCOc1CLc1 - up more than 40 percent in the past year - has lifted profits for producers across the globe, but also threatens to erode demand for fossil fuels at a time when electrification is becoming commonplace.
Harold Hamm, the billionaire founder of U.S. shale pioneer Continental Resources Inc (CLR.N), is due to address OPEC ministers, along with fellow shale executives Hess Corp (HES.N) CEO John Hess and Pioneer Natural Resource Co (PXD.N) Executive Chairman Scott Sheffield.
Lifting that ban ushered in a sea change in global energy, sending nearly 2 million barrels of U.S. crude to India, China and other markets historically dominated by OPEC and forcing the group and its American rivals to be more conciliatory.
Hamm, who called OPEC a “toothless tiger” in 2014, has begun encouraging fellow shale companies to focus more on profitability and less on profligate production. Last month, Hamm addressed a Saudi Aramco board meeting in Houston.
It was a change in tone for Hamm, who in 2011 erected a granite monument on the windswept plains of North Dakota that boasted of the rising clout of U.S. oil production and the nation’s ability to supply its own energy.
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