US EditionU.S. oil production has likely peaked and will start to decline due to price plunge, Diamondback CEO warns
- On May 8, 2025, Diamondback Energy CEO Travis Stice indicated that domestic onshore oil output has probably reached its highest level and is expected to begin declining this quarter in the Permian Basin, Texas.
- This outlook follows a 15% drop in fracking crews nationwide and a 20% decline in Permian Basin crews, driven by a 17% crude price fall and tariff-related cost pressures.
- Diamondback, a major independent operator in the Permian Basin, has reduced its capital expenditure by $400 million, scaled back its operations by removing three drilling rigs and a single completion team, and plans to maintain these reduced activity levels through most of the third quarter of 2025.
- Stice explained that the company is slowing its pace of activity as economic uncertainty and declining oil prices impact the industry, likening the situation to easing off the gas pedal when nearing a stop signal.
- This production decline threatens the U.S.'s status as the world’s largest fossil fuel producer and raises energy security concerns if prices do not stabilize soon.
18 Articles
18 Articles
A top exec says America's oil industry is at a 'tipping point' and US production is set to drop
imaginima/Getty ImagesWith crude prices at multi-year lows, the US oil industry is at a "tipping point," a top energy exec said. A historic production boom is at jeopardy if prices don't stabilize.America's oil boom is at a crosrroads, according to a top industry executive.The CEO of Diamondback Energy warned that tumbling oil prices will depress US crude output, predicting that American onshore production has peaked. Prices hit a four-year low …
A top CEO declared the U.S. oil industry has 'peaked'
A record-breaking, but maturing U.S. oil industry has “peaked” and already begun its decline as it struggles under the weight of tariffs and lower oil prices, the CEO of the Permian Basin’s top pure-play producer said. Crude oil prices have fallen this week to new four-year lows since the pandemic amid recession fears and unexpected production hikes from OPEC nations and their allies. As a global slowdown spreads throughout every industry, U.S. …
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