at its investor day last week that it fell short of its performance targets in the Delaware basin in the Permian “primarily due to higher-than-expected depletion after completing long-sitting DUCs.”As U.S. production growth stalls, OPEC’s market share and clout over global oil supply will only rise. The cartel, led by its biggest Arab Gulf producers, is in control of the markets now, shale executives say.
According to the executive, OPEC’s market share will jump from around 30% now to close to 50% in the future, in which additional supply comes from OPEC and U.S. shale growth plateaus. Saudi Arabia, the United Arab Emirates, and Kuwait all plan to raise their oil production capacity this decade. And they are set to meet a growing share of global oil demand now that U.S. shale cannot and does not want to respond with higher production. The market is now back in the hands of OPEC, but the cartel alone cannot meet all the expected growth in demand.