Lates News

According to reports from American media, some large oil companies in the United States are reducing capital expenditures in domestic shale basins, using unexpected gains from high oil prices to increase shareholder returns and pay down debt, rather than accelerating production growth. Financial reports indicate that Chevron and ConocoPhillips have cut their capital expenditures by 10% in the first six months of this year across the contiguous 48 states, while Occidental Petroleum reduced its spending in the Permian Basin by 20% during the same period. APA Corporation, Matador Resources, and Peak Energy are also expected to significantly lower their drilling and fracking expenditures compared to the same period last year. However, the reduction in spending does not automatically a decline in production. Advances in drilling and fracking technologies mean that most operators can produce more oil for every dollar spent. But this also means that more companies are maintaining stable production or achieving growth through efficiency improvements rather than higher spending. This trend is suppressing the growth of U.S. crude oil supply, even as Trump criticizes the industry for failing to quickly lower gasoline retail prices.