The prolific US shale oil and gas industry is decelerating in the face of weakening commodity prices, suggesting production growth will stall at a time of booming demand.
Evidence of stagnating activity is mounting. A survey by the Federal Reserve Bank of Dallas posted a score of zero for business activity growth in the second quarter among some 150 oil and gas groups in its region — suggesting any expansion had hit a wall. It was the lowest score since 2020, when an oil price crash during the coronavirus pandemic forced operators to slash headcounts and idle drilling rigs.
On Friday, data showed that the number of drilling rigs deployed across the country had fallen for the eighth week in a row, according to Baker Hughes, an oilfield services company.