Two oil companies that are focused on the Permian Basin of West Texas have already planned to slow down their respective operations because of an oil war pitting Russia against Saudi Arabia.
The skirmish has already caused commodity prices to plummet.
Both Midland oil company Diamondback Energy and Austin oil firm Parsley Energy have confirmed that they will slice the number of drilling rig and hydraulic fracturing crews.
Diamondback was ranked the fourth-most active driller in Texas in 2019. Diamondback usually has 20 drilling rigs in the field at any given time.
Parsley was ranked among the top 20 drillers in Texas in 2019. It usually keeps 15 drilling rigs in the field.
"The combination of a strong balance sheet and corporate agility is critical in these challenging and volatile times," Parsley Energy CEO Matt Gallagher told the Midland Reporter-Telegram.
"We must act swiftly with an aim to preserve a stable free cash flow profile and remain committed to doing whatever is necessary to protect our balance sheet in the weeks and months ahead."