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Abu -Dhabi, United Arab Emirates – US Energy Minister Chris Wright does not worry about falling oil prices and their impact on shale oil in America, and emphasizes that there should be a time of energy for the world’s largest economy in the coming years.
“The US shale industry is going to survive and thrive,” Wright said in an interview with Dan Murphy in CNBC in the Emirate Arab -Dabobi Arab Emirates capital. “But, of course,” he added, “investment solutions will be adapted if prices remain over a long period of time. But I am very bullish in the US industry.”
Prices A greater supply to the market both from OPEC and non-OPEC – With less income threatens the viability of shale producers.
In June, the shelf life of Global Benchmark Brent Crude traded at $ 63.51 a barrel on Friday at 1:43 pm in London, which is 0.28% more than Thursday. The front month is my US WTI The contract was $ 60.26 per barrel, which is 0.32% of the previous day. Last year, both contracts decreased by about 22%.
To make its view, Wright referred to the 2014 to 2016, during which the boom in the production of shale coincided with lower world demand and reduced oil prices by 70%. Industry was forced to fight The tidal wave of bankruptcy.
But the Energy Minister took the optimistic angle. “In 2015 and 2016, oil prices reached 28 dollars twice (a barrel), and what happened? What did the US shale – innovation, become smarter, reduce your expenses, and what is happening now,” Wright said.
Product analysts believe that the US needs to remain above $ 65 a barrel to keep shale manufacturers in business. This week, Goldman Sachs lowered the oil prices for the US to $ 58 a barrel by December 2025 and $ 51 per barrel by December 2026, decreasing compared to the previous $ 66 for a barrel and $ 59 a barrel in 2026.
Wright-existent Slate Executive Director itself, founded and served as CEO Freedom energy As long as to leave to join the US Presidential Administration Donald Trump. Liberty Energy’s Affected the stock price Among the slide of oil prices and trade tensions, the shares decreased over 46%.
The comments of the Energy Secretary’s secretary come approximately a week after the OPEC Alliance and not Opec producers producing oil known as OPEC+, made a shocking decision to accelerate It has already been planned to hike for the production of raw production, adding more supplies to the already rich market. The decision helped to push the raw prices even more.
However, long -term OPEC+ members need higher oil prices to balance their budgets. Unlike this, Trump has promised to “drill, baby, drill” to reduce prices for US consumers, and long speak of the desire of OPEC members to pump more oil for this reason.
Asked if this could eventually put the United States and OPEC to the collision, Wright answered negatively.
“I don’t think it’s a collision at all. What we see and what I saw here in the UAE, and you see in Saudi (Arabia), and Qatar is a very long-term energy vision,” Wright said.
“Yes, of course, there is an additional revenue reduction when you have lower oil and gas prices. But the investments made here and the relationships that have been built here are considering decades to the future.”
Wright insisted that there is a general alignment in the US energy strategies and its rich Arab Gulf, in particular, the leaders of which are planned to meet during their visit to the Middle East, which is ahead of the expected visit to the Trump region.
“The way to improve the lives of Americans is better, and the world’s citizens are better – it is more energy, more affordable energy and just a much brighter and more prosperous future,” Wright said. “This is the way on which we go. And I think, definitely () the UAE and Saudi Arabia and Qatar, I think we are all aligned in this mission.”
