Oil investors expect better returns, not production growth

Houston

US shale drillers are stepping on the brakes in the wake of a growing investor revolt that has held down company values, even as they have scored historic production numbers.

The evidence is stacking up: The latest rig count showed the biggest one-week drop in the Permian Basin in 19 months, while Schlumberger Ltd and Baker Hughes, the two largest oil service companies, blamed lacklustre earnings on the reluctance of North American explorers to boost their spending. At the same time, a Bloomberg Intelligence index of shale explorers showed that shares have plunged 22 per cent so far this year.