Oil companies cut Permian Basin presence amid virus, prices

Texas

Gas prices are listed as 1.499 for unleaded at a 7-11 gas station in Oklahoma City, Wednesday, March 18, 2020. Rising stockpiles and lowered demand are contributing to the low prices. (AP Photo/Sue Ogrocki)

CARLSBAD, N.M. (Carlsbad Current-Argus) — Oil companies have begun reducing operations in the Permian Basin as the new coronavirus slows global energy demands and adds to the drop in the price of oil.

The Carlsbad Current-Argus reports Houston-based Apache Corporation announced it would pull all its oil and gas rigs out of the Permian to save on short-term spending.

Pioneer Natural Resources, which operates mostly in the Delaware Basin on the western side of the Permian and is one of the largest acreage holders in the region, also announced a significant cut in operations.

Overall, Pioneer’s capital budget was to be cut by 45 percent.

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