EOG Resources, one of the largest shale operators in the US, clearly said that it is ready to increase oil production if there is a demand for it.

In a videoconference hosted by Goldman Sachs, CEO Ezra Yacob said EOG could return to pre-pandemic production levels this year if it makes economic sense.

Oil producers in the US, especially those in the shale sector, have focused on shareholder returns amid the pandemic. Faced with shareholder dissatisfaction, oil shale producers opted to cut production and increase dividends and other payments instead.

So far, the prospects for oil demand remain optimistic.

Recent production shutdowns in Libya and Kazakhstan have also overshadowed the group's plans to return to pre-pandemic production levels.

Given the high demand, this has opened up opportunities for non-OPEC producers, such as US shale producers, to step in and fill a potential supply gap that some analysts warn could appear later this year.