US production has added only about half of what was expected over the last year up to December, he explained, and the industry has been facing dwindling refining capacity and inventories.
"Our estimate for free cash flow was $8 billion last year, the number we printed it's going to be $4 billion at $80 for 2023," he said."So inflation is up, all prices are down, so people just don't have the capital to continue to grow.", the international benchmark, traded at about $83 a barrel. Sheffield anticipates that production growth will dramatically slow, and said the US could return to output of about 13 million barrels a day in two to three years.
That level is the record high average reached in November 2019, data from the Energy Information Administration shows. "I see us at a bottom, we've had everything thrown at us, we had the SPR, million barrels a day thrown at us, we've had a recession, we had Chinese lockdown, and we've been bouncing around between $73 and $80 WTI," Sheffield maintained."So we're definitely at a bottom, and the question is when do we break out? I predict sometime this summer we'll break past $80 WTI on the way to $90 a barrel.
and if not true, is that CEO going ro resign?