Shale drilling in Permian basin shrinks at fastest pace in three years

David Wethe, Bloomberg August 25, 2023

(Bloomberg) – Operators in the Permian basin pulled back on rig use at the fastest pace in three years as the world’s most prolific shale basin shrinks amid consolidation and the slow return in oil demand.

Rigs targeting both crude and natural gas in the West Texas and southeast New Mexico region declined by 7 to 320 this week, according to data released Friday by Baker Hughes Co. It’s the biggest weekly drop in the Permian since June 2020.

Drillers have been dialing back U.S. activity as growth in global oil demand returns slower than executives were expecting. Public producers have also been cutting after buying their closely held rivals in order to keep a lid on spending growth and return profits to shareholders.

Connect with World Oil
Connect with World Oil, the upstream industry's most trusted source of forecast data, industry trends, and insights into operational and technological advances.