BP has warned that traditional producers such as Saudi Arabia will continue to hold sway over crude prices, despite the increasing role played by US shale.
In an interview with the Financial Times, BP chief executive Bob Dudley said emerging technical issues raised questions over the scope for shale companies to rival traditional producers over the longer term.
“There are cracks appearing in the model of the Permian being one single, perfect oilfield. I don’t think [US shale] will be the perfect swing producer now. For a while, I was worried. But I think it is going to be less solid,” Dudley told the FT.
Driven by rising production in its Permian basin, in Texas and New Mexico, the US has been tipped to become an increasingly important producer and exporter of crude.
Nevertheless, some analysts have maintained that US shale expansion will become more and more difficult during the 2020s, as the easiest to access resources will have already been tapped.
While it has some exposure to shale, the bulk of BP´s assets are centred on traditional oil and gas projects.