Friday, 12th April, 2024
Friday, 12th April, 2024

Devon Energy joins shale producers

The new boss of Devon Energy Corp. said he won’t let this week’s rally in oil prices tempt him to return to the days of rampant production growth at any cost, becoming the latest shale executive to call for restraint.

“I have a hard time seeing the need for U.S. producers over the next several years to get back to double-digit growth,” Chief Executive Officer Rick Muncrief said in an interview. “For this management team, if we really think about 2021, let’s keep it flat.”

Muncrief’s comments echo those of Scott Sheffield, who heads up Pioneer Natural Resources Co., and Occidental Petroleum Corp.’s Vicki Hollub, after Saudi Arabia’s surprise plan to cut production in the next two months sent oil prices surging. All three executives urged caution, mindful of the industry carnage caused by years of unchecked growth that burned through cash and left investors with little to show for even before the pandemic took its toll.

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