(Bloomberg) — In brokering the end to the global oil-price war last month, the Trump administration assured leaders that America’s shale patch would throttle back production.
But few expected that the cuts would run this deep — and happen so quickly.
Drillers are laying down rigs and shutting in wells at a frantic pace in response to the plunge in oil prices caused by the coronavirus pandemic. A week after West Texas Intermediate crude settled below zero for the first time ever, analysts at JPMorgan projected that the U.S. would cut output by 1.5 million barrels a day by June. Two weeks into May, production is already down by at least that much and continues to decline.
As a result, oil storage tanks