U.S. shale producers Continental Resources Inc. and Callon Petroleum Co. on May 11 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 May 11 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 (bbl/d) through April and expects it to reach over 3,000 gross bbl/d during May.

June volumes are currently under evaluation, the company said.

Onshore