After pushing U.S. production to record levels, some shale companies are doing the unthinkable: They are planning to pump less.
The pullback is sharpest among the country’s largest natural-gas drillers. Several producers, including EQT Corp. EQT -3.62% and Chesapeake Energy Corp. CHK -3.32% , have said during third-quarter earnings that they may shrink output next year.
“I don’t think OPEC has to worry that much more about U.S. shale growth long term,” Scott Sheffield, chief executive of Pioneer Natural Resources Co., recently told investors. Among them is Pittsburgh-based EQT, the country’s largest natural-gas producer, which plans to spend roughly $400 million less next year and said last week its production could decline slightly. Chief Executive Toby Rice said spending could fall another 30% after 2020, citing lower gas prices.
Bank of America last month lowered its outlook for gas prices in 2020 to $2.35, down from $2.60 and below the price at which drilling is profitable in many regions. SHARE YOUR THOUGHTS How do you expect shale companies’ profits to fluctuate in the next year, if at all? Join the conversation below. Mark Papa, chief executive of Centennial Resource Development Inc., echoed that prediction, saying last week that U.S. shale will be in what he called a “growth-challenged environment” for the next decade.
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