DENVER, Aug 13 (Reuters) - OPEC and U.S. shale producers should reduce crude shipments into an oversupplied market, Continental Resources Chief Executive Harold Hamm said on Tuesday.
Hamm, who heads one of the largest U.S. shale companies, urged energy producers to curb spending and production, echoing his position two years ago as cuts by the Organization of the Petroleum Exporting Countries paved the way for greater U.S. shale output.
In comments that touched on oil demand, U.S. trade with China, and hedging, Hamm said at the EnerCom energy conference in Denver that he expected OPEC and its allies to further cut output.
U.S. shale producers “need to row our own boat,” he said. “We need to make sure we don’t oversupply the market.”
OPEC and allies including Russia this year extended production curbs to March 2020 in a move to prop up oil prices. But U.S. producers continue to pour more shale into global markets, dampening prices and hurting profit.
U.S. shale producers have cut the number of active drilling rigs, but he said reductions “haven’t bottomed yet,” noting that “we’re heading for 800” onshore rigs. The U.S. oil and gas land rig count was 909 as of last week.
“Capital discipline is more important now than at any time I’ve seen it,” said Hamm. “We can oversupply the market, and we have,” he said, referring to oil production. (Reporting by Liz Hampton; Editing by Cynthia Osterman and Richard Chang)