The dynamic growth of shale in recent years is suffering a slowdown as industry investors demand higher returns and lower debt, according to fracking insiders.
Shale producers such as Pioneer, Range Resources, EQT Corp, and Whiting Petroleum have reduced production targets and cut staff, aiming to meet investors’ bottom-line demands for more profit and less leverage.
“This was a hard decision to make, and one we did not take lightly, but ultimately it was a necessary, prudent action,” Range Resources CEO Jeff Ventura told Reuters regarding his firm’s actions.
The company has sold $1.1 billion in assets, closed offices, and reduced staff, using proceeds to buy back shares and reduce debt amid weaker oil prices.
“Fracking is a uniquely American success story that has provided immense benefits around the nation,” the Independent Petroleum Association of America stated. “By safely unlocking America’s abundant natural resources, fracking has created millions of American jobs, reduced energy prices, brought cleaner air by significantly reducing U.S. greenhouse gas emissions to 25-year lows, strengthened our national security, and transformed the United States into a global energy superpower.”
