Shale Firms Balk at $100 Oil Unless Prices Stay High

US shale firms are unlikely to increase production at $100 a barrel unless high prices last longer, according to executives at CERAWeek. Despite current global price increases of around 50% due to Iran's effective closure of the Strait of Hormuz, many operators have locked in drilling plans and budgets for the year.

ConocoPhillips is not considering increasing production, said Nick Olds, executive vice president of the company’s U.S. onshore lower 48 operations, adding that ConocoPhillips would need to see sustained higher prices.

The cycle from deciding to add rigs to drilling and producing crude can take at least half a year in the US, according to Steve Gassen, SLB's executive vice president of geographies. 'There needs to be a line of sight to higher oil prices for longer,' Gassen said.