Scott Sheffield

Bleak Financial Outlook for US Fracking Industry

Read time: 5 mins
Drilling rig at twilight

In early 2018 when major financial publications like the Wall Street Journal were predicting a bright and profitable future for the fracking industry, DeSmog began a series detailing the failing business model of fracking shale deposits for oil and gas in America.

Over a year later, the fracking industry is having to reckon with many of the issues DeSmog highlighted, in addition to one new issue — investors are finally giving up on the industry.

CEO of Major Shale Oil Company 'Has Second Thoughts' on Fracking Rush, Wall Street Journal Reports

Read time: 6 mins
Permian Basin

On Monday, the Wall Street Journal featured a profile of Scott Sheffield, CEO of Pioneer Natural Resources, whose company is known among investors for its emphasis on drawing oil and gas from the Permian basin in Texas using horizontal drilling and hydraulic fracturing, or fracking.

Back in 2014, Sheffield told Forbes that he expected Pioneer could produce a million barrels of oil a day from the Permian basin by 2024 — up from 45,000 barrels a day in 2011.

Now, Sheffield, who left the helm of Pioneer in 2016 and returned this February, says that those million-barrel-a-day plans are looking increasingly doubtful as the industry has struggled to prove to investors that it’s capable not only of producing enormous volumes of oil and gas, but that it can do so while booking profits rather than losses.

We lost the growth investors,” Pioneer CEO Scott Sheffield told the Journal. “Now we’ve got to attract a whole other set of investors.”

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