The COVID-19 pandemic has sent shock waves through the industry over the past couple of months. As the global economy ground to a halt, the outlook for US shale and land drilling has become much less certain. Operators and drilling contractors have scrambled to position themselves for the long haul as best as they can.
WTI crude prices below $30/bbl could result in a 50% drop in the number of new wells drilled compared with 2019. WTI closed under $20 on 1 May.
As of 1 May, Baker Hughes’ US land rig count had dropped by 49% from the beginning of this year, to 392.
In March, 34 out of the 51 public E&P companies active in the US announced a combined $33 billion in CAPEX cuts.