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Pioneer Natural Resources Co PXD

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Morningstar’s Analysis

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Long-Term Oil Demand Is More Bullish Than You Think

Preston Caldwell Senior Analyst

Analyst Note

| Preston Caldwell |

Many investors are wondering about the future of oil demand, given discussion around achieving net-zero carbon emissions by 2050. Surprisingly, a consensus base case for oil demand doesn't exist. Other forecasters typically lean on a variety of scenarios rather than staking out a base case. Neither the typical "business-as-usual" scenario nor the typical bear scenario is a good guide for long-term oil demand. The business-as-usual scenarios reflect pessimistic attitudes when it comes to major clean technologies like electric vehicles. On the other hand, the bear scenarios reflect very rosy assumptions around the implementation and efficacy of carbon policy. Our base case is far closer to the business-as-usual scenarios for oil demand than the bearish scenarios. We project oil demand to drop from 99 mmbp/d in 2019 to 88 mmbp/d in 2050, an 11% drop or 0.4% annual decline.

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Company Profile

Business Description

Headquartered in Irving, Texas, Pioneer Natural Resources is an independent oil and gas exploration and production company focusing on the Permian Basin in Texas. At year-end 2020, Pioneer's proven reserves were 1.3 billion barrels of oil equivalent with net production for the year of 367 mboe per day. Oil and natural gas liquids represented 81% of production.

Contact
777 Hidden Ridge
Irving, TX, 75038
T +1 972 444-9001
Sector Energy
Industry Oil & Gas E&P
Most Recent Earnings Sep 30, 2021
Fiscal Year End Dec 31, 2021
Stock Type Hard Assets
Employees 1,853

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