Billionaire shale pioneer Harold Hamm says oil prices could end the year below current levels as economic growth stagnates in the US and overseas.
(Bloomberg) — Billionaire shale pioneer Harold Hamm says oil prices could end the year below current levels as economic growth stagnates in the US and overseas.
Hamm, who founded Continental Resources Inc., told Bloomberg TV Thursday that he expects crude to finish the year in the high $70s or low $80s a barrel. His view contrasts with a forecast from Scott Sheffield, chief executive officer of rival producer Pioneer Natural Resources Co., who said Wednesday that he sees oil surging to $100 as the OPEC+ coalition extends production cuts.
“We keep shooting ourself in the foot with the American economy here at home, and that affects everybody abroad,” said Hamm, who was among the first to use horizontal drilling to unleash oil from North Dakota’s Bakken Shale. While the rate of inflation is coming down, “you never get rid of that inflation that happened” and its impact on the economy, he said.
Read more: Billionaire Hamm Sees a Great Fortune Still Untapped in US Shale
The world’s biggest oilfield contractors are pivoting to greater growth overseas in the second half of this year amid slowing activity and record costs in the US. Hamm said his company has seen cost inflation as high as 20%.
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