Pioneer’s Incoming CEO Sees Chance of Oil Hitting $100 This Year

(Bloomberg) — Oil demand will continue to increase, helping send crude prices to $80 to $100 a barrel later this year, according to the incoming chief executive officer of Pioneer Natural Resources Co.

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As dealmaking starts to heat up in the industry, Pioneer, one of the dominant independent explorers in the prolific Permian Basin, will have a “high bar” to make acquisitions, Rich Dealy said in an interview with Bloomberg Television.

Dealy, currently the company’s chief operating officer who will takeover as CEO for retiring boss Scott Sheffield, declined to comment on speculation that Exxon Mobil Corp. has been in early-stage talks to buy Pioneer.

Takeover talk is reaching a fever pitch among North American oil producers, who are trying to secure drilling sites for the future. Among output challenges in the industry, labor continues to pose problems for shale firms in the Permian, Dealy said.

Read More: Pioneer CEO Sheffield to Retire After Building Shale Giant