Two big American shale producers said they would cut capital expenditure on Monday in response to sliding oil prices, prompting industry warnings that US production had peaked and could begin falling.
Diamondback Energy, one of the largest producers in the west Texas Permian basin, the largest US oilfield, said it estimated the number of US fracking crews had already fallen by 15 per cent this year and would continue to decline unless there was a rapid turnaround in prices.
The company said it was cutting its 2025 capital budget by $400mn to between $3.8bn and $4.2bn and dropping three drilling rigs. Diamondback forecast the number of drilling rigs operating in the US would fall by 10 per cent by the end June and decline further in the third quarter.