Oil – Texas shale explorer says it’ll halt drilling if state imposes OPEC-style production caps

Forex

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. 

Diamondback Energy is on of the biggest Texas shale explorers.
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