1 Permian shale producer Pioneer Natural Resources (PXD.N) could further restrain output growth in the largest U.S. oilfield, squeezing pipeline companies and suppliers, executives and energy advisors said.
Consolidation, steep cost inflation and investor demands for returns have shrunk production growth this year in the Permian shale formation in West Texas and eastern New Mexico.
U.S. oil producers are pumping more oil, but the pace of growth has slowed due to lower drilling activity.
Overall, oil companies have cut 36 active drilling rigs in the Permian in the last year, a 10% drop.
Recent shale consolidation, including Civitas Resources (CIVI.N) and Callon Petroleum-Percussion (CPE.N), also led to reductions in the combined companies' active drilling rigs.
Persons:
Exxon Mobil's, they've, Ajay Bakshani, Darren Woods, Ben Crook, East Daley's Bakshani, Webster, Robert Webster, Arathy Somasekhar, Arunima Kumar, Marguerita Choy
Organizations:
U.S, Exxon, Natural Resources, Reuters, Daley Analytics, Civitas Resources, Callon Petroleum, roughnecks, Hennessy Energy, Fund, Targa Resources, Energy, East, Plains, Oil, Thomson
Locations:
West Texas, New Mexico, Houston, Bengaluru