Shale Patch Expected to Cut Budgets for First Time Since Last Crash
- Lower prices mean explorers must trim spending to avoid debt
- West Texas Intermediate benchmark has tumbled 34% since Oct. 3
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Shale explorers will likely cut spending budgets next year for the first time since the last price crash as crude spirals down again, analysts said.
U.S. benchmark oil prices have dropped by more than a third from an Oct. 3 high, the largest percentage decline since early 2016. On Thursday West Texas Intermediate briefly dropped below $50 a barrel, the minimum price most big shale companies plan their growth around, down from averaging almost $67 this year through September.