Diamondback Energy is on of the biggest Texas shale explorers.
- Chief Financial Officer Kaes Van’t Hof said the company already is in the process of shutting down 30% of its drilling and would take it to zero if the state clamps down on production.
In the event of quotas …
- “That turns that industry, the service industry, on to the same issues that the restaurant industry is facing today where they’re completely shut down with zero revenue and zero employment.”
I bolded that bit on jobs – a huge issue right now and a very unsubtle threat from the firm. Imposing quotes on US producers was always going to be difficult for this output cut deal.