Shale Executives See Takeovers Squeezing US Oil Production

US oil production will decline if the corporate-acquisition spree sweeping the shale sector is prolonged, according to a Federal Reserve Bank of Dallas survey.

More than 50% of oil executives told the Dallas Fed they foresee lower domestic crude output if the consolidation trend continues for five years, according to second-quarter survey results released Wednesday.

“Consolidation by E&P firms has curtailed investment in exploration,” an unidentified executive was quoted as telling the bank. “The last few years of mergers and acquisitions have decreased activity in the oil patch,” another said. About 48% expects “slightly lower” output and another ...