U.S. shale producers hit the brakes on 2019 spending | Reuters

U.S. shale producers hit the brakes on 2019 spending | Reuters:

U.S. shale producers are slamming the brakes on next year’s drilling with crude prices off 40 percent and mounting fears of oversupply, paring budgets that in some cases were set only weeks earlier. 

The reversal is alarming because blistering growth in shale fields has propelled U.S. crude output 16 percent to about 10.9 million barrels per day for 2018, above Saudi Arabia and Russia. Production has been expected to rise 11 percent more in 2019 as large oil firms and independents added wells this year.

Shale producer Centennial Resource Development on Thursday joined rivals Diamondback Energy, and Parsley Energy in canceling drilling rig additions next year. Centennial, led by shale pioneer Mark Papa, withdrew its 2020 production target and canceled plans to add 2.5 drilling rigs, citing market weakness.