Shale producer Devon Energy Corp. has curtailed roughly 10,000 bbl/d of oil production, its CEO said at an energy conference on June 16, but said Devon still expects to end the year with output flat with 2019 levels.
U.S. oil and gas companies have slashed spending and pared production amid a sharp slide in prices that began in March as the COVID-19 pandemic crushed fuel demand. U.S. shale production is anticipated to fall to a two-year low of 7.63 million bbl/d in July, according to the U.S Energy Information Administration.
Devon's CEO, Dave Hager, downplayed the company's production cutbacks as "not very much," and predicted output would ultimately be about flat with last year.
Speaking at the J.P. Morgan Energy, Power and Renewables conference, Hager said he does not expect additional production curtailments with current oil prices above $30/bbl.
U.S. oil futures settled at $38.38 on June 16
Devon plans to run two hydraulic fracturing crews in the second half of the year, and expects to exit 2020 with a backlog of 100 drilled-but-uncompleted wells. It will exit June with eight rigs operating.
Hager also said he was confident Devon would close on the previously announced sale of its Barnett Shale assets to Thailand-based investment group Banpu Kalnin ventures. The deal was announced in December, but was restructured and the closing was delayed after oil prices crashed.