A record-breaking but maturing U.S. oil industry has “peaked” and already begun its decline as it struggles under the weight of tariffs and lower oil prices, the CEO of the Permian Basin’s top pure-play producer said.
Crude oil prices have fallen this week to new four-year lows since the pandemic amid recession fears and unexpected production hikes from OPEC nations and their allies. As a global slowdown spreads throughout every industry, U.S. oil producers are quickly pivoting to drop drilling rigs and cut costs with prices now below the levels for profitability, including key Texas Permian producers Diamondback Energy and Coterra Energy, both of which held their earnings calls May 6.
