By Liz Hampton

(Reuters) – Top Permian Basin oil producer Pioneer Natural Resources (NYSE) said that it will decrease its hedging in 2014, as Chief Executive Officer Scott Sheffield stated on Thursday. The company anticipates oil prices of between $80- $100 per barrel for the next few years.

Pioneer has lost more than $2 billion in hedging this year due to rising oil prices.

Although the company stated that they don’t plan to add hedges to their portfolio, it said it was optimistic about oil prices. It also noted that there is more space for prices to go up than down. Hedges are used by oil producers as insurance to protect against price drops.

I believe that the market will become more tight over time. Sheffield spoke on a conference phone, saying that OPEC+ will use up its remaining capacity within the next two-years.

Thursday saw OPEC, its allies, and the United States declare that they intend to continue increasing output by 400,000 barrels per hour starting in December. However, this was despite the fact that more supplies are needed to reduce oil prices.

Pioneer sold the Delaware Basin assets of its subsidiary to Continental Resources (NYSE:), for $3.25 Billion.

Pioneer’s shares fell 2.6% by midday to $184.89, and Continental Resources dropped 4.5% at $44.84.