Oil industry needs $70/barrel to grow production, executives say

 Feb 24 (Reuters) – The oil industry needs crude prices to rise and sustain at $70 per barrel in order to grow output, executives said on Tuesday.

U.S. oil production can be maintained at its current level in the $60 to $65 price range, said Vicki Hollub, CEO of U.S. oil producer Occidental, during an Energy Aspects conference in Washington.

Benchmark Brent crude prices declined about 19% last year, pressured by concerns about a global oversupply of oil and uncertainty about U.S. trade policy. U.S. President Donald Trump has called on oil companies to enter Venezuela and boost production there. Oil executives have warned that additional supply would squeeze profits and lead to less drilling, not more.

“We are going to need $70 oil to continue to grow,” Hollub said.

Scott Sheffield, founder of Pioneer Natural Resources, which was acquired by Exxon Mobil in 2024, echoed the comments, warning that production from the Permian Basin in the U.S. would drop off if crude prices declined to about $50 per barrel.

A price range of $50 to $55 per barrel “is when people are going to start reducing investments in the Permian,” Sheffield said, adding that “$70 is the sweet spot.”