Why did Baker Hughes' U.S. Oil Drilling numbers Continue to decline in 2019?

Key points:

Active drilling continues to decline as shale companies cut back on spending amid a lack of financial backing and increasing pressure from investors for returns.

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Know experts answer editor YanYan matrix | | market original content
The growth in U.S. oil drilling in recent years has been driven by the large number of small and medium-sized independent oil companies in shale basins, which have driven the U.S. shale revolution and sustained rapid growth in U.S. crude oil production. In theory, high output equals high returns, so the field was once a favorite of the capital markets.

Years later, however, the capital markets saw that production continued to grow, but shareholder returns did not, and with the exception of a few leading independent shale players who were able to generate positive cash flow surprises, most shale companies were unprofitable and heavily indebted. As a result, investors began to dump their shares and it became very difficult for them to issue debt.

Active drilling continues to decline as shale companies cut back on spending amid a lack of financial backing and increasing pressure from investors for returns.