The standoff between US shale oil producers and OPEC has been resolved by a truce that is expected to end “price wars”. A joint dinner of top management in a restaurant following the oil conference ended with an agreement between the parties not to rush to increase production, writes Archyde.com.
As a token of loyalty, the shale players presented OPEC Secretary General Mohammad Barkindo with a bottle labeled “Real Barnett Shale” from the oil field that launched the shale revolution.
After dinner, Chesapeake CEO Domenic Dell’Osso commented on the outcome:
If the shale industry increased production only to make prices fall, we would destroy most of the value for shareholders and would not solve the problem.
He added that a number of producers are under pressure from shareholders to pay dividends rather than increase spending on exploration and drilling. And this has to be taken into account.
The tradition of OPEC’s annual lunch-dinner with competitors dates back to 2017 and is aimed at finding a common language with rivals.
