OPEC officials discuss energy issues with executives of major US oil companies

Executives of major US oil companies held private meetings with top OPEC officials on Monday on the sidelines of a conference in Houston to discuss energy matters, people familiar with the matter said, continuing a tradition that began nearly five years ago when the two sides were fierce rivals.

Both sides enjoy strong global demand for oil and gas, and have posted record profits over the past year. Their rivalry faded with the stabilization of the shale oil boom that brought the United States to the top of global oil producers and reduced OPEC’s market share.

OPEC viewed shale oil as an unbridled force that reduced its revenues by bringing huge new oil supplies onto the market. Relations improved after shale companies acquiesced to investor demands for higher capital returns and lower spending on capacity expansion.

For most recent years, the gala dinner has been held during an energy conference in the capital of the US oil industry.

This year’s dinner is the first to be attended by Haitham Al-Ghais as Secretary-General of OPEC. He took office in August.

Among the top US corporate executives seen by Reuters reporters at the dinner were Chesapeake Energy CEO Nick Del Oso, Pioneer Natural Resources CEO Scott Sheffield, and Hess Corporation CEO John Hess.

This year’s private dinner comes at a turbulent time for global markets, as the war in Ukraine has disrupted global oil and gas flows.

US oil production is expected to rise by less than 600,000 barrels per day in 2023, a much slower rate than about two million barrels per day in 2018.

Meanwhile, OPEC committed to cutting members’ production by two million barrels per day, setting a floor for prices.

Fewer OPEC officials are attending the annual CERA Week conference this year, with ministers from key countries including Saudi Arabia and Iraq absent.