Shale giants view a crude oil ascent above $100 as bad for industry

Shale giants view a crude oil ascent above $100 as bad for industry

Major shale-oil drillers are dreading the prospect of $100-a-barrel crude on fears it will tempt less-disciplined rivals to expand output and create a new supply glut.

With an expectation that global crude demand may outpace production as soon as this year, Pioneer Natural Resources Co. Chief Executive Officer Scott Sheffield is bracing for oil to range from $75 to $100. US crude has been above $75 for the past week and a half and briefly rose to almost $85 in late October.

“I hope it stays there,” Sheffield said during a Goldman Sachs Group Inc. energy-conference webcast on Wednesday. Prices approaching $110 or $120 “is not going to help our industry.”