Oil company executives surveyed by the Federal Reserve Bank of Dallas predict there will be a decline of US oil production—-if the corporate-acquisition spree continues across the shale sector.
More than 50% of them said they see lower domestic crude output, especially if the consolidation of oil and gas firms continues for the next five years.
Bloomberg reported the results of the survey were released Wednesday.
“Consolidation by E&P firms has curtailed investment in exploration,” one executive told the bank.
Another said, “The last few years of mergers and acquisitions have decreased activity in the oil patch.”
At least 48% of the oil executives believe the nation’s oil output will be “slightly lower” while another 6% of them predict “significantly lower” production.
Even as news of the survey spread, there came word that SM Energy Co. agreed to acquire Uinta Basin operator XCL Resources in a three-way deal valued at $2.55 billion.
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