US shale oil production peaks amid sharp price decline — Diamondback Energy

Diamondback Energy, the largest independent producer in the Permian Basin, says US shale oil production has likely hit its peak and is expected to decline in the coming months due to the sharp drop in crude prices. 

The company’s representatives anticipate the total number of onshore oil rigs across the US will drop by nearly 10% by the end of the second quarter, with further declines expected in the following months. Diamondback Energy CEO Travis Stice warns this could significantly tighten the American crude market.

Before prices collapsed, most banks and research firms had projected US shale output would grow this year and next before plateauing later in the decade. But with weakening demand and unfavorable market conditions, Diamondback Energy has moved to cut rigs and crews. The company now estimates its average oil production for this year at approximately 488,000 barrels per day.