Diamondback Warns US Oil Output Has Peaked

Diamondback Energy, the largest independent oil producer in the Permian Basin, has warned that US onshore oil production has likely peaked and will soon decline, citing plummeting crude prices—down 17-20% this year to near four-year lows—driven partly by increased OPEC+ supply and President Trump's trade tariffs. CEO Travis Stice said these factors, alongside reduced drilling activity, have prompted Diamondback to lower its production guidance, capital spending, and drilling operations. The company’s revised outlook marks a departure from earlier forecasts that predicted sustained US shale growth through the late 2020s. Industry insiders agree that current oil prices are unsustainable for production growth. These developments raise concerns about the long-term strength of US fossil fuel dominance and the broader economic impact of unstable energy markets. Diamondback’s stance could influence both U.S. energy policy and global oil market dynamics.