Shale oil companies in the United States are idling some of their drilling rigs in response to the lowest global oil prices in at least four years, Bloomberg reports.
“The shale-oil drilling boom in the U.S. is showing early signs of cracking,” writes Doan, with the number of rigs in operation down from 1,609 in October to 1,568 in November. “The slide threatens to curb a production boom in U.S. shale formations that has helped bring prices at the pump below $3 a gallon for the first time since 2010 and shrink the nation’s dependence on foreign oil imports.”
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“We are officially seeing the slowdown in oil drilling,” consultant James Williams, President of Arkansas-based WTRG Economics, told Bloomberg. “We’re already down 49 rigs since the peak in October. It’ll have fallen by more than 100 rigs by the end of year.”
Reuters reported last month that Saudi Arabia is prepared to keep prices low for up to two years to undermine U.S. shale producers. (h/t to InsideClimate News)
