Continental Resources, Callon join shale peers in curtailing oil output

Credit: REUTERS/ANDREW CULLEN

Adds details from Callon report, background

May 11 (Reuters) - U.S. shale producers Continental Resources Inc CLR.N and Callon Petroleum Co CPE.N on Monday joined their peers in curtailing oil production as global crude prices plunged due to excess supplies and tumbling demand due to the COVID-19 crisis.

A month-long oil price war between Saudi Arabia and Russia and the economic fallout from the COVID-19 pandemic caused a historic drop in oil prices and sent shockwaves through the North American energy sector, forcing producers to drastically cut their spending and scale back on activity.

Continental said on Monday it has curtailed 70% of its May oil output, and would reduce current operating rigs to four from five by the end of the year.

Reuters reported last month that Continental stopped all drilling in North Dakota, shut in wells and issued a force majeure notice, an action typically reserved for situations out of a company's control, such as natural disasters.

Callon said it has shut in about 1,500 gross barrels per day (bpd) through April and expects it to reach over 3,000 gross bpd during May.

June volumes are currently under evaluation, the company said.

(Reporting by Arunima Kumar and Shanti S Nair in Bengaluru; Editing by Ramakrishnan M.)

((Arunima.Kumar@thomsonreuters.com))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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