Overview

• Diamondback Energy confirms U.S. onshore oil production has peaked and will begin to decline this quarter due to sustained low oil prices.
• Frac crew counts have fallen 15% nationwide, with the Permian Basin seeing a 20% drop since January, and further declines are expected.
• U.S. oil-directed rig counts are projected to decrease by nearly 10% by the end of the second quarter, continuing into the third quarter.
• Diamondback has reduced its capital budget by $400 million, while Coterra Energy plans a 30% cut in Permian rigs, reallocating some investment to natural gas operations.
• Falling crude prices, driven by OPEC+ supply increases and U.S. tariffs, jeopardize the nation’s energy security and its position as the world's top fossil fuel producer.