Executives say that the oil industry needs to increase production at $70 per barrel.

Executives said that the oil industry needs to see crude prices rise and maintain at $70 per barrel in order to increase production.

Vicki Hollub is the CEO of U.S. Oil. She said that U.S. production could be maintained in the range $60-$65. Occidental oil company, at the Energy Aspects Conference in Washington.

Benchmark Brent crude fell by 19% in the last year due to concerns over a global oil glut and uncertainties about U.S. trade policy. U.S. president Donald Trump has called on oil companies to increase production in Venezuela. Oil executives warned that increased supply could be a problem.

Squeeze profits

This will lead to less drilling and not more.

Hollub stated that "we will need oil at $70 to continue to grow."

Scott Sheffield, the founder of Pioneer Natural Resources which was acquired by Exxon Mobil 2024, made similar comments. He warned that if crude prices dropped to $50 per barrel, production from the Permian basin in the U.S. could drop.

Sheffield added that "$70 per barrel is the sweet spot." (Reporting and writing by Valerie Volcovici, Washington; editing by Chris Reese).

(source: Reuters)