(UPI) Federal review expects most of the lucrative shale basins in the United States are expected to post declines in crude oil production. File photo by Gary C. Caskey/UPI WASHINGTON, Nov. 10 (UPI) — Only the Permian shale basin in the southern United States is expected to record a year-on-year increase in oil production, federal data show.
The U.S. Energy Information Administration in a monthly report on drilling productivity found most of the seven inland shale basins that account for nearly all of the domestic oil production growth between 2011-14 are now in decline.
Energy companies are spending less on exploration and production because lower crude oil prices translate to less capital available for investments. The trend in spending is reflected in the decline in the number of rigs deployed across North America.
Oil field services company Weatherford said in its report for the third quarter it trimmed capital spending plans for full-year 2015 by $100 million to $650 million, more than 50 percent lower than last year. Early this year, the company said it planned to cut staff by about 11,000, but would now increase that to 14,000 and close five of its seven manufacturing and service facilities.