US shale producers slash spending amid falling oil prices

Shale oil producers across the US are slashing spending and dropping rigs as the business faces its first major test from a steep decline in the oil price

Unless prices rebound in the next few months, a sharp slowdown in production growth, or even a reversal, over the next 18 months looks inevitable. The US WTI benchmark oil price has fallen by more than half over since last summer to less than $50 a barrel (/b). And the situation is even worse for producers in the Bakken, where local crude grades are trading at a steep discount to WTI. On 7 January, Williston basin sweet crude in North Dakota was selling for just $32.19/b, according to listings by Plains Marketing. Eagle Ford producers are slightly better off, Eagle Ford sweet crude was trading at $45/b. Shale producers have been quick to respond. Continental Resources plans said it plans to