• 2 minutes California to ban gasoline for lawn mowers, chain saws, leaf blowers, off road equipment, etc.
  • 6 minutes China and India are both needing more coal and prices are now extremely high. They need maximum fossil fuel.
  • 11 minutes Europeans and Americans are beginning to see the results of depending on renewables.
  • 7 mins GREEN NEW DEAL = BLIZZARD OF LIES
  • 3 days The Climate Scare Stories Began With Far Left Ideology Per GreenPeace Co-Founder
  • 2 hours NordStream2
  • 21 hours Monday 9/13 - "High Natural Gas Prices Today Will Send U.S. Production Soaring Next Year" by Irina Slav
  • 23 hours Biden Sets Target Of 50% EV Share In U.S. Car Sales In 2030
  • 41 mins US intel warns China could dominate advanced technologies By NOMAAN MERCHANT October 22, 2021
  • 3 days Putin and Xi have decided not to attend the Climate Summit in Glasgow
  • 3 days "The Hidden Story About California's Container Ship Backlog" via Corbett Report
  • 2 days Storage of gas cylinders
Building The World’s Largest Wind Turbine

Building The World’s Largest Wind Turbine

The wind energy revolution is…

Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. 

More Info

Premium Content

US Oil Turns Its Back On The Permian As Prices Crash

Amid crashing oil prices, oil firms are rushing to cut budgets and exposure to the most prolific shale basin in the United States, the Permian, yet industry bodies expect the shale patch to survive the oil price war and the oil price collapse despite the short-term pain.  

Apache Corporation said two weeks ago it was slashing its 2020 capital investment plan to $1.0 billion-$1.2 billion from a previous range of $1.6 billion-$1.9 billion. Apache will also stop pumping oil in the Permian in the coming weeks to limit “exposure to short-cycle oil projects.”  

“We are significantly reducing our planned rig count and well completions for the remainder of the year, and our capital spending plan will remain flexible based on market conditions,” John J. Christmann IV, Apache’s chief executive officer and president, said in a statement.

A few days later, Pioneer Natural Resources also announced it was “taking decisive action in response to lower oil prices and global macroeconomic uncertainty.”  

Pioneer is cutting its 2020 drilling, completion, and facilities capital budget by some 45 percent, expecting it to range between $1.6 billion to $1.8 billion. Faced with low oil prices, the company will reduce its operated rig count from 22 currently to 11 operated rigs within the next two months.  Related: Rig Count Plummets As Oil Price War Rages On

“With the significant reduction in energy investment over the past five years, exacerbated by the expected decline in shale production, I expect oil prices to recover once the global economy stabilizes and Pioneer to emerge in a stronger, more enviable position through the actions we are taking today,” Pioneer’s President and CEO Scott Sheffield said.

Industry bodies in New Mexico, home to part of the Permian basin, are not all doom and gloom. 

“It’s going to be a challenging business environment, but New Mexico is well-positioned for when we come out of it,” Robert McEntyre, spokesperson for the New Mexico Oil and Gas Association, told Carlsbad Current-Argus

U.S. oil producers will feel the short-term pain from the huge global oversupply and crashing demand in the Covid-19 pandemic, but they are in a position to prevail in the longer term, Kathleen Sgamma, president of the Western Energy Alliance, told Carlsbad Current-Argus. 

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment
  • Mamdouh Salameh on March 23 2020 said:
    The US shale oil industry of which the Permian is the jewel in the crown has been a bankrupt industry long before the coronavirus outbreak and the oil price war both of which will hasten the demise of the industry.

    If the $7-trillion industry survives in the next few years it is because the Trump administration will eventually write off the hundreds of billions of dollars of outstanding debts it owes not only because of its importance for the US economy but also because it enables the United States to have a say in the global oil market along Russia and Saudi Arabia.

    Still, nobody can save a bankrupt industry for ever. It will be no more in 4-9 years from now.

    Dr Mamdouh G Salameh
    International Oil Economist
    Visiting Professor of Energy Economics at ESCP Europe Business School, London

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News