U.S. Shale Majors Cut Spending Despite Higher Oil Prices

Why it matters

U.S. shale majors cutting spending despite higher oil prices signals a notable shift in capital allocation and production growth outlook, which could influence credit risk and energy sector financing, but it is not a systemic or regulatory event.

Sources

• OilPrice.com

  U.S. Shale Majors Cut Spending Despite Higher Oil Prices

  U.S. oil companies dominating the shale patch are planning to trim their spending plans and instead take advantage of higher international oil prices to reduce debt and boost shareholder returns. This is bad news for production growth. Bloomberg reported earlier this month that…