U.S. oil companies are trimming domestic shale capital spending and redirecting
windfall from high oil prices into shareholder returns and debt repayment rather
than accelerating production. Company filings show Chevron and ConocoPhillips
cut U.S. 48-state capex by about 10% in H1, while Occidental cut Permian
spending roughly 20% over the same period; APA, Matador Resources and HighPeak
Energy expect drilling and fracking spend materially below year-ago levels.
Firms say gains in drilling and completion productivity mean more oil per
dollar, so lower capex does not automatically translate into lower volumes as
operators sustain or grow output via efficiency. The shift is weighing on U.S.
crude supply growth and is drawing political pressure as Trump criticizes
refiners and producers for not cutting retail gasoline prices faster.
