Shale oil companies in the U.S. are expected to deliver 15 percent annual oil production growth while cutting their capital expenditure by 5 percent in 2019, according to Rystad Energy.
American shale oil companies have set aside a capital budget of approximately $84.9 billion in 2019 -- a 5 percent decline from $89.4 billion in 2018, according to a statement by Norway-based independent energy research and business intelligence company on Friday. The largest capital budget decline of $2 billion, or 9 percent year-over-year, is expected in the U.S.' resource-rich shale play in the Permian basin located in the states of Texas and New Mexico.
In other basins, such as Marcellus along New York and Utica in Ohio, the capital budget of operating companies is anticipated to see a decrease of $1.6 billion, or 18 percent year-over-year. "Earnings and guidance confirm that most U.S. shale operators aim to moderate drilling and completion activity this year, prioritizing cost discipline over aggressive growth," Rystad Energy partner Artem Abramov said in the statement.
The research company confirmed that it analyzed the financial reports of 45 American oil companies for the fourth quarter of 2018, which also included their plans for production and capital expenditure for 2019.
(Anadolu Agency)
