US oil companies to reduce production in May and June by 300 thousand barrels per day

US, WASHINGTON (ORDO NEWS) — US energy companies are cutting production at their rigs, thereby deepening the decline in production in the industry, although America has become the largest oil producer in the world over the past few years, CNBC writes.

Six major US oil shale producers are expected to cut oil production by about 300 thousand barrels per day during May and June, according to Rystad Energy analysis.

“By analyzing the information provided by Continental Resources, Cimarex Energy, ConocoPhillips, PDC Energy, Parsley Energy and Enerplus Corporation, we estimate that the reduction in oil production in May and June 2020 may reach 300 thousand barrels per day compared with the forecast for April 2020 year reductions of 100,000 barrels per day,” the Rystad report said.

According to the Energy Information Administration (EIA), in March the output of US energy companies remained at a record high, even though prices fell due to collapse in demand as a result of the coronavirus pandemic.

Recent weekly government data show that in the third week of April, production was 12.2 million barrels per day, the lowest level since July and 900 thousand barrels per day less than the record peak of 13.1 million barrels per day in early March.

The Oklahoma-based Continental Resources company is taking “the most decisive action to date,” Rystad said, predicting Continental production to drop 69,000 barrels per day in April and down 150,000 barrels per day in May and June.

Based in Houston, Texas, ConocoPhillips announced a May production cut of 125,000 barrels of oil equivalent, Rystad writes.


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