US oil companies cut drilling rigs, risking 2026 production fall
Updated
Updated · The New York Times · May 1
US oil companies cut drilling rigs, risking 2026 production fall
15 articles · Updated · The New York Times · May 1
Baker Hughes said fewer US rigs were drilling last week than when the war with Iran began on 28 February, while the Energy Department last month warned output could decline in 2026.
Companies are holding back despite higher energy prices because new wells take months to bring online and executives are focusing on expected crude prices later this year rather than current spikes.
Investor pressure to keep budgets tight is reinforcing caution, as producers fear boosting spending now only to face losses if the Strait of Hormuz reopens and oil prices retreat.
With record oil profits, why won't U.S. companies drill more to lower prices at the pump?
How will the Iran war and industry caution permanently reshape the future of global energy markets?