Oil Chiefs See $60 Oil as Breaking Point for Shale Growth

Core Viewpoint - Top executives from major oil companies remain optimistic about the medium and long-term oil market despite acknowledging short-term bearish conditions due to oversupply [1][2][4] Supply and Demand Dynamics - Short-term supply growth is outpacing demand, leading to a projected glut, with varying estimates on the extent of oversupply later this year and early next year [2] - The International Energy Agency (IEA) reported a significant increase in oil supply, with an addition of 102 million barrels in September, the largest increase since the pandemic [3] Market Outlook - Executives express confidence that the market will rebalance in the medium term, with supply struggling to keep up with demand in the long term [2][4] - TotalEnergies' CEO highlighted that non-OPEC crude production will decline when oil prices fall to $60 per barrel or lower, indicating a potential slowdown in the shale industry [5][6] Production Projections - U.S. oil output is expected to grow by 300,000 to 400,000 barrels per day this year, but may plateau at WTI prices between $60 and $65 per barrel [6]