“We see very little capital flowing into the industry and we see higher declines from all the shale players throughout the rest of the year,” he said. “Starting to drill in the high $30s? I’m not sure I see that.”
The data appears to support his view. Drill rigs carving new wells in the U.S. have dropped to the lowest in more than a decade and producers’ spending in the second quarter is expected to be 60% down on the first three months of the year, according to data provider Coras Research.
“We are not putting new capital to work,” Parsley Chief Executive Officer Matt Gallagher said by email. “Our drilling and frac operations remain suspended as we evaluate market fundamentals.”
--With assistance from Stephen Cunningham.
This article was provided by Bloomberg News.