Sub-$50 Oil Has U.S. Shale Producers Cutting Rigs Loose Early
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U.S. oil producers are bailing out of long-term contracts for drilling rigs as crude prices sink below $50, another signal that the nation’s shale boom is slowing.
Helmerich & Payne Inc., the biggest rig operator in the U.S., this week said it had received early termination notices for four contracts. Yesterday, a second contract driller, Pioneer Energy Services Corp., said four rigs had been canceled early. Producers may cut short another 50 to 60 agreements, according to Bloomberg Intelligence analyst Andrew Cosgrove.