Pioneer Natural Resources (PXD)’s Refining Capacity Saturation Dilemma

Pioneer Natural Resources (NYSE:PXD) has been riding high on the U.S. energy boom. It’s not only Pioneer Natural Resources (NYSE:PXD), but several energy, oil and gas companies that have witnessed tremendous growth over the past few years and are predicting the good times to continue. The oil boom has reached such a stage that companies in U.S. are finding it tough to refine the oil that they are producing. Scott Sheffield, CEO of Pioneer Natural Resources (NYSE:PXD), discussed the energy boom that U.S. is going through and regulations concerning energy industry on Fox Business on Thursday.

Pioneer Natural Resources (NYSE:PXD)

“I will describe this as a game changer for this country; the U.S. oil production was at 5 million barrels a day just a few years ago. Now we are at 8.5 million barrels a day and it’s all because of the oil shell revolution with three big discoveries and primarily the Permian basin, 75 billion-barrel field, the Eagle field, a 25 billion-barrel field and then the Bakken, 25 billion-barrel field,” Sheffield said.

Sheffield revealed that Pioneer Natural Resources (NYSE:PXD), along with another company, has made a filing with the U.S. Commerce Department that allows it to export the condensate that comes out of the Eagle field as it goes through distillation. He also revealed that Pioneer Natural Resources (NYSE:PXD) has already exported two cargos, one of them to South Korea and another to Europe, he highlighted that due to the Ukrainian crisis, Europe needs this product.

Sheffield feels that once the refining capacity in U.S. matches up to the pace of its oil production, companies would be able to export even oil, apart from the condensate that is already exported. He believes that the refining capacity saturation in U.S. would cease to exist in the nest three year as the general public, the administration and the U.S. Congress gets educated about the potential that U.S. posess in terms of exporting oil and natural gas. Sheffield predicts that if U.S. starts exporting natural gas, it will put pressure on OPEC and bring the cost of natural gas down.


Disclosure: None

Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The 8 Best Foods for Gaining Weight

The 10 Most Expensive Colleges in the World

The 7 Most Memorable Ad Campaigns of All Time

The 7 Most Expensive High Schools in the World

The 10 Electric Vehicles with the Longest Range

The 10 Cities with the Worst Drivers in the World

The 10 Most Expensive Dresses Ever Created

10 Islands to Visit Before You Die

10 Famous Celebrities Who Needed Rehab

The 15 Countries with the Largest Oil Reserves

The 10 Most Overused Excuses in the World

The 5 Best iOS Apps You Can’t Get on Android

5 Companies Damaged By Social Media Blunders

The 10 Most Legendary Blues Songs

The 10 Most Lawless Places in the World

4 Reasons China is a Threat to the US

The 17 Most Sugary Drinks in the World

The 10 Most Ruthless Rulers in History

The 10 Greatest Generals in History

Top 8 Travel Destinations for 2015

The 10 Safest Dog Breeds for Children

The 10 Most Stolen Vehicles in the US

The 7 Most Expensive Celebrity Weddings

The 10 Best LoL Teams in the World

Top 10 Worst Marketing Campaigns Ever Produced

Top 5 Diets that Help You Lose Weight

The 10 Best Ways to Stay Awake

7 Artists That Switched Musical Genres

The 10 Most Expensive Cities to Live in New Jersey

The 10 Best High Schools in New York

The 10 Countries With the Least Gender Inequality

The 6 Biggest Musician-Manager Feuds

The 10 Countries with the Cheapest Gas Prices

The 7 Most Theatrical Bands of All Time

The 8 Worst Band Breakups of All Time

The 10 Most Important South American Leaders

The 7 Most Successful Casting Show Winners

The 10 Most Peaceful Countries in the World

5 Big Reasons Communism Failed

The 15 Most Famous Carl Icahn Quotes

10 Scary Animals that are Actually Harmless

The 8 Most Famous Singer-Actors in Entertainment

The 10 Longest Wars of All Time

The 13 Worst Looking Foods that Taste Great

The 6 Most Gruesome Injuries Suffered During a Sports Match

The 20 Biggest Contracts in MLB History

The 7 Worst Blown Calls in Sports History

7 Free Ways to Advertise Your Business Online

The 18 Best R&B Songs of the 90’s

The 10 Most Dangerous States to be a Cop

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!