The collapse that sent U.S. benchmark prices into negative territory last week persuaded many smaller-scale, privately held drillers to shut many of their wells until the economy revs up again and demand bounces back. These drillers—in places like West Texas, New Mexico, North Dakota, Wyoming and Louisiana—collectively account for about a quarter of American production. The pullback means that a sizable amount of U.S. oil production could stay in the ground for months, while refiners burn through a glut of crude in storage. Consequently, some observers have sharply revised U.S. forecasts for 2020 production, with faster and deeper cuts than previously expected.
This article was originally published by Wall Street Journal on the 30 April 2020.
Read the full article: https://www.wsj.com/articles/small-oil-drillers-are-turning-off-taps-more-quickly-than-anticipated-11588251194