This Oil Executive Thinks the Oil Market Is Way Too Optimistic (and That's Wildly Bullish for Oil Prices)
The prevailing view in the oil market is that U.S. shale is an unstoppable force. No matter what OPEC does to contain supplies, shale drillers will quickly unleash a flood of production, which will keep a tight lid on prices. Fueling that view is the perception that oil producers in the U.S. have a nearly unlimited supply of drilling locations, which can keep them growing for decades.
However, Mark Papa, the former chief executive of EOG Resources (NYSE: EOG) and current leader of Centennial Resource Development (NASDAQ: CDEV), sees things a bit differently. In his opinion, even in a rising oil price environment, there just aren't enough high-quality drilling locations remaining to meet the industry's currently optimistic view of production growth. Consequently, oil prices could rise significantly over the next few years once the market realizes that shale won't be able to keep up.
Image source: Getty Images.
Source: Fool.com
