Texas is the leading oil producing state in the country. The Permian basin and Eagle Ford Shale Play are largely located in Texas and one of the most actively drilled targets for conventional oil and unconventional oil, such as shale and oil sands. Due to the coronavirus pandemic, the number of operational oil rigs in the U.S. has been significantly reduced, with only 132 oil rigs used in the Permian basin in June 2020. Despite the Permian being the most productive oil region, Eagle Ford ranked first in terms of oil production per new well. In July 2020, an average of 1,789 barrels of oil per day were extracted from newly drilled wells in the shale play.
As a result of the relatively high cost of unconventional oil production, the coronavirus pandemic threatens to devastate many U.S.-based oil and gas projects. The preliminary WTI prices for 2020 already indicate the annual average could fall lower than during the oil glut in 2016. This would prove incredibly detrimental to an industry that employs 142,000 people and where over 50 percent of shale companies were either technically insolvent or stressed once prices fell below 35 U.S. dollars per barrel.