While downturns always sow the seeds for upturns, the current oil market collapse may have a more dramatic impact on the U.S. land market than previous downturns, Evercore ISI analysts said in a recent webinar.

Expectations for a third consecutive year of positive E&P spending growth shifted to double-digit declines across all the geographic regions, said James West, senior managing director of oil services, equipment and drilling research with Evercore.

“U.S. shale has been impaired, the market has been reset and we think that we have a new normal for the U.S. oil market with only about 400 to 450 rigs and about 150 to 200 frac spreads to support the lower supply levels,” he said.

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