US drilling sinks to record low with oil in retreat

Bloomberg

Oil and natural gas exploration plunged to an all-time low as the economic and industrial dislocations from the Covid-19 pandemic snuffed out the remnants of the American shale boom.
Drilling in US oil and gas fields retreated by 34 rigs this week to 374, led by a precipitous drop in crude exploration that sank to levels not seen since before the shale-oil revolution kicked off at the beginning of the last decade.
Energy companies are in a full-on retreat as the historic slump in crude markets prompts widespread job cuts, budget reductions, contract cancellations and well shut-ins. In the span of just eight weeks, 53% of active American oil and gas rigs have gone dark, according to data released by Baker Hughes Co.
“This is an unprecedented downturn,” EOG Resources CEO Bill Thomas said during a conference call with analysts. “US oil production is in severe decline and it could take years for domestic production to turn around. We believe that the historic and prolific oil-production growth by US shale may have been forever altered.”
Benchmark American oil futures have dropped 63% from the 2020 high of $65.65 a barrel in early January as the worldwide pandemic slashed demand for petroleum-based fuels at a time when the global surfeit was already expanding. On April 20, the price cratered to minus $40.32.