Oil Growth to Stall in the Other Texas Shale Patch in 2019
- Output seen declining 12 percent from high in October: Rystad
- Operators in the western basin most likely to scale back
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Drillers in the Eagle Ford, Texas’s other shale oil patch, will likely scale back activity in 2019 as lower crude prices eat into cash flows, according to consulting firm Rystad Energy AS.
Production has already started slowing, with supplies this month expected to average less than 1.3 million barrels a day for the first time since May. If West Texas Intermediate crude prices stay below $50 a barrel, output could fall to 1.2 million by the end of the year, said Artem Abramov, Rystad’s vice president of shale analysis. That’s 12 percent below the two-year high reached in October.