It’s looking like another Oil Bust is on the way.
America’s shale producers are slashing spending at a pace that signals mounting distress across the industry. Excluding ExxonMobil and Chevron, the top 20 operators have gutted more than $1.8 billion in capital expenditures over just two quarters, according to Enverus — a cutback that threatens to choke future drilling and stall U.S. oil growth.
Behind the belt-tightening is a stark calculation: lower crude prices may not be a blip, but the beginning of a painful downcycle. Companies are scrambling to conserve cash, but many are already warning that shareholder returns could suffer and drilling programs may grind to a halt.
The retrenchment has raised fears of a broader unraveling. A sustained downturn could trigger bankruptcies, slash jobs across oil-producing states, and ripple through service providers and local economies dependent on the shale boom. Analysts caution that if production falters, U.S. energy security — and the country’s leverage in global oil geopolitics — could erode faster than markets expect.