Pioneer Natural Resources Co. CEO Scott Sheffield foresees continued tightening in the oil market over the next few years as spare capacity is drawn down and producers continue prioritizing returns over volumes.

During a recent conference call to discuss third quarter earnings for the Permian Basin pure-play, Sheffield predicted that spare production capacity within the Organization of the Petroleum Exporting Countries and its allies, aka OPEC-plus, will get “used up over the next two years,” as “there is no extra supply…

“I’m a firm believer that we’re going to be in a $80 to $100 scenario over the next several years, if not higher.”

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