U.S. oil drillers from Texas to North Dakota are scaling back plans to drill new wells next year as crude prices tumble.
The benchmark U.S. oil price has plunged more than 25% since late June to trade below $80 a barrel this week, in part because Saudi Arabia has cut its prices to wrest back market share. Oil fell 77 cents to $77.91 a barrel on Thursday.
Continental Resources Inc., a major oil producer in North Dakota’s Bakken Shale, said Wednesday that the company wouldn’t add drilling rigs next year. ConocoPhillips Co. said that next year’s budget would fall below the $16 billion spent this year, dropping plans for some new wells in places such as Colorado’s Niobrara Shale.