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Bloomberg
Explorers slashed drilling in the world’s biggest shale patch for a 13th straight week as they wrangle with a global pandemic that’s crimping demand for crude and leaving many strapped for cash.
The number of active drilling rigs in the Permian Basin of West Texas and New Mexico fell by 4 to 137, just 3 above a record low in 2016, according to Baker Hughes Co data. Across the US, explorers idled 7 oil rigs, bringing the total to 199.
Worldwide lockdowns to prevent the spread of Covid-19 had a devastating impact on crude demand at a time when shale explorers were already struggling to generate enough free cash flow to meet their hefty debt loads. While benchmark US oil futures have rebounded to more than $35 a barrel from their plunge to minus $40 in April, prices are still down 40% for the year.