US shale companies cut drilling as oil prices fall

The number of crews working in U.S. shale fields has reached a four-year low. Major companies including ExxonMobil and Chevron have cut investment by nearly $2 billion over the past two quarters.

US shale oil production will fall due to the price war with OPEC+. American producers are stopping drilling rigs and cutting costs amid falling raw material prices, writes the Financial Times .

The number of crews working in shale fields hit a four-year low last week, and investment plans for 20 leading players, including ExxonMobil and Chevron, have fallen by nearly $2 billion over the past two quarters.

The industry is talking about a new price war with Saudi Arabia, Russia and other OPEC+ countries, while Donald Trump is urging US oil producers to increase output. “We have gone from ‘drill, baby, drill’ to ‘wait, baby, wait,’” Latigo Petroleum Chief Executive Kirk Edwards told the Financial Times. He said shale producers are not going to add new rigs until prices return to $75 a barrel.

Stanislav Mitrakhovich, an expert from the National Energy Security Fund and the Financial University, comments:

Stanislav Mitrakhovich leading expert of the National Energy Security Fund and the Financial University

What will happen to oil prices in the coming months? And how does the fall in raw material prices affect Russian producers? Independent oil and gas market expert Vladimir Demidov says:

Vladimir Demidov independent expert of oil and gas market

The U.S. Department of Energy forecasts that the average price of WTI crude oil will fall below $48 per barrel next year. That's nearly $20 below the level at which shale companies break even.