U.S. Shale Oil Producers Reduce Investment Plans Amid Low Prices
MOSCOW (Sputnik) - Falling oil prices are starting to affect U.S. shale producers, as many companies are cutting back on their investment plans, eyeing lower operational profitability amid a weaker market next year.
Kristian Rouz — U.S. shale drillers appear to be facing the same old problem: declining oil prices. Several top producers of shale oil said they have downgraded their spending plans for the next year as U.S. oil (WTI) recently plunged below $50/bbl after the worst quarter in roughly four years.
Shale producers, most notably, working in North Dakota's Bakken oilfield and Texas' Permian Basin, said the recent 40-percent decline in oil prices and the mounting concerns of oversupply have prompted them to review next year's budgets.
The majority of U.S. oil producers adopted their 2019 spending plans just weeks ago, pricing in the likely effects of the Iran oil embargo and OPEC output cuts — but the reality of falling crude prices over the past week alone (an 11-percent drop) is threatening the stability of the shale industry yet again.
This comes as U.S. oil production was set to exceed 11 million bpd next year, surpassing the output of such oil giants as Russia and Saudi Arabia. However, these plans could now be in jeopardy, as several major American producers have said they will abandon plans to commission additional oil rigs in the coming months.
Kristian Rouz — U.S. shale drillers appear to be facing the same old problem: declining oil prices. Several top producers of shale oil said they have downgraded their spending plans for the next year as U.S. oil (WTI) recently plunged below $50/bbl after the worst quarter in roughly four years.
Shale producers, most notably, working in North Dakota's Bakken oilfield and Texas' Permian Basin, said the recent 40-percent decline in oil prices and the mounting concerns of oversupply have prompted them to review next year's budgets.
The majority of U.S. oil producers adopted their 2019 spending plans just weeks ago, pricing in the likely effects of the Iran oil embargo and OPEC output cuts — but the reality of falling crude prices over the past week alone (an 11-percent drop) is threatening the stability of the shale industry yet again.
This comes as U.S. oil production was set to exceed 11 million bpd next year, surpassing the output of such oil giants as Russia and Saudi Arabia. However, these plans could now be in jeopardy, as several major American producers have said they will abandon plans to commission additional oil rigs in the coming months.