(Reuters) – The oil industry needs crude prices to rise and remain at $70 a barrel in order to boost production, executives said on Tuesday.
Vicki Holub, CEO of U.S. oil producer Occidental, said at an energy conference in Washington that U.S. oil production can be maintained at current levels in the $60 to $65 price range.
Benchmark Brent crude oil prices fell about 19% last year, weighed down by concerns about a global oil glut and uncertainty over U.S. trade policy. US President Donald Trump has called on oil companies to enter Venezuela and expand production. Oil company executives have warned that additional supply will squeeze profits and lead to less drilling, not more.
“We need $70 oil to continue to grow,” Holab said.
Scott Sheffield, founder of Pioneer Natural Resources, which was acquired by Exxon Mobil in 2024, made similar comments, warning that production from the U.S. Permian Basin would decline if oil prices fell to about $50 a barrel.
Sheffield said the $50 to $55 per barrel price range “is when people start to invest less in the Permian,” adding, “$70 is the sweet spot.”
Reporting by Valerie Borcovisi in Washington. Written by Sheila Dunn. Editing: Chris Reese
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