US oil production could decline by nearly 20% as drilling companies reduce capital costs and are on track to curb activity after the biggest oil price crash since 1991, warns Scott D. Sheffield, CEO of Pioneer Natural, one of the largest independent oil producers in the US industry.

The US could wipe out between 2 and 2.5 million barrels per day of production by the end of 2021 if oil prices remain around current levels as companies go into “support mode”, said Scott D. Sheffield.

His estimate is similar to that of Oslo-based research firm Rystad Energy.

Most shale producers will be forced to close up to half of their wells by the end of this year. Scott D. Sheffield did not provide details of his own company plans, which he said would be announced in the coming days. The collapse in oil prices could lead to the deletion of enough companies and production globally to create oil shortages, leading to higher prices after 2022, Sheffield predicts.

“It will be difficult to increase production anywhere in the world, so at this point, we could have a two or three-year super cycle at oil prices between 60 USD and 100 USD”, added he.