JPT -The US Fracturing Market Is Sinking, But How Low Will It Go?

With oil prices hovering in the mid-$20s for more than a week, and facing the threat that they may be driven lower by an expanding surplus, US shale producers have begun moving heavy capital out of the field. When they are done, the shale business might be about half its current size in terms of activity.

More than two dozen of the largest US shale producers have already announced 20%–30% cuts to their capital budgets. Apache Corporation and QEP Resources are among the first to take the drastic step of halting all drilling and completions activity.

Some large Permian producers, including Pioneer Resources and Parsley Energy, plan to lay down at least half their rig fleets in the coming weeks. Executives at both firms said they will take pay cuts to cope with the sudden downturn.

 https://pubs.spe.org/en/jpt/jpt-article-detail/?art=6802&