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Bloomberg
Oil production from the top seven shale regions in the US is set to tumble to levels not seen since 2018 as drillers scale back in response to the recent price collapse.
Losses will be led by the Permian Basin — which straddles Texas and New Mexico — where output is seen falling by 87,000 barrels a day in June to 4.29 million, according to the Energy Information Administration’s latest Drilling Productivity Report.
Overall production is seen falling by 197,000 barrels a day next month to 7.822 million barrels, which would be the lowest since late 2018.
The expected decline would have been even more dramatic if not for a downward revision to May’s output estimate in the order of half a million barrels a day.
Casualties of the unprecedented oil downturn have included thousands of job losses as producers shut in wells with demand in freefall as a result of the pandemic. With oil prices on their way up as lockdowns are lifted and cities re-open, the worst of the slowdown may be over.