September 4, 2019 / 3:36 PM / 3 months ago

Centennial Resource CEO predicts lower U.S. oil growth

Sept 4 (Reuters) - Shale pioneer Mark Papa said Tuesday that U.S. oil output will grow by 700,000 barrels per day in 2020, below government estimates.

The U.S. shale business is feeling the effects of lower crude oil prices, capital constraints imposed by Wall Street investors demanding fiscal discipline and well spacing issues, Papa, chief executive at Centennial Resource Development, told investors at a Barclays energy conference in New York.

“We’re seeing a lot of difficulty in growing U.S. oil production,” Papa said, noting that U.S. output has been hovering around 12.1 million bpd for months.

A ‘dearth’ of the best locations in the major U.S. shale basins will affect oil prices in 6 months to 3 years, Papa said. (Reporting by Jennifer Hiller)

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