US Oil Growth Slows as Majors Cut Spending

US oil growth is facing headwinds as some of the largest US oil companies are cutting capital spending in the country's shale basins. Companies like Chevron Corp., ConocoPhillips, and Occidental Petroleum Corp. have reduced their spending by 10% to 20% in the first six months of the year.

According to earnings reports, Chevron cut its capital expenditure in the Lower 48 by 10%, while Occidental cut spending in the Permian Basin by 20%. APA Corp., Matador Resources Co., and HighPeak Energy Inc. are also on track to spend less than a year ago.

Despite reduced spending, production growth is not necessarily affected. Advances in drilling and fracking techniques have led to increased efficiency, allowing operators to produce more oil for every dollar spent.

The US is expected to grow production by about 200,000 barrels a day this year to 13.8 million barrels a day, according to the US Energy Information Administration forecasts.