Shrinking Shale Output Sets In as Explorers Dial Back Drilling

Expansion in the US shale patch has come to an end for now with output set to shrink for a second straight month in September, according to a government report.

After topping out with record crude production in July, the US is on track for its first two-month decline since January 2022, according to a Monday report by the US Energy Information Administration. The drop is led by the Permian Basin in West Texas and New Mexico, where output will fall for a third month to 5.8 million barrels a day, its lowest level since February. The Permian had been the last of the four US shale basins to drive growth in overall US production.