Shale Giants Clash Over Oil-Supply Cut to Survive Crude Rout
- Lone Star state hasn’t restricted output in almost 50 years
- Diamondback warns of complete drilling halt if quotas imposed
Photographer: Daniel Acker/Bloomberg
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One of the biggest Texas shale explorers warned it will halt all drilling if the state imposes OPEC-style production caps, raising the stakes in a debate over a contentious proposal to arrest free-falling oil prices.
The stark pronouncement from Diamondback Energy Inc.’s finance chief stunned observers of Tuesday’s virtual hearing by the Texas Railroad Commission, which oversees oil output in the Lone Star state. At issue was whether the state should restrict crude output for the first time in roughly 50 years.