While speaking at Hart Energy’s DUG Permian Basin conference on April 5, Randy Foutch, founder, chairman and CEO of Laredo Petroleum Inc., hit some familiar themes on the challenges U.S. producers face. The industry veteran quoted Saudi Arabia’s Ali al-Naimi, who observed at CERA Week in 2016 while he was still minister for energy, industry and mineral resources that upstream firms have only three options: “lower costs, borrow cash or liquidate.”
The Saudi minister failed to observe producers “can get very good at what you do,” Foutch said. “U.S. producers did not collapse, to the surprise of many” when Saudi and its fellow OPEC members opened their valves and flooded the world’s oil market to maintain market share in late 2014.
Why? Because the U.S. upstream operators have become very proficient at what they do—and are getting better, Foutch said.
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Source: Daily Dose of ShaleDirectories.com News