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Bloomberg
On the same day Opec-style oil quotas in Texas were pronounced dead on arrival, shale drillers disclosed more supply cuts in response to the crude market collapse.
Diamondback Energy, Parsley Energy and Centennial Resource Development became the latest Permian Basin shale explorers to say they were curbing output. A pandemic-fueled crash in oil prices has been so severe that producers have moved beyond laying down drilling rigs to shutting in existing output.
Midland, Texas-based Diamondback is dialing back 10%-15% of its May production, the company said in an earnings statement after the market closed. Parsley said it’s suspending all drilling and fracking work and is curtailing up to 23,000 barrels a day of production this month.
Centennial, which started as a blank-check company backed by private equity firm Riverstone Holdings LLC, is shutting in up to 40% of output this month while also suspending all drilling and fracking activities and cutting its workforce.