More than 300 oil and gas companies filed for bankruptcy protection Monday, and the U.S. industry’s biggest companies will see their production drop by more than 3.5 million barrels per week in the next two years.
That’s a drop of nearly 3.4 million barrels a day, according to a Reuters analysis of government data.
The drop is the biggest since the end of 2014, when production peaked at nearly 7.7 million barrels.
And that’s likely to lead to a slowdown in shale production as states and companies try to stem the impact of oil and natural gas-related spills.
The U.N. estimates that more than 4.7 billion barrels of oil were produced worldwide in 2014, a decline of nearly 8 percent from the year before.
U.K. energy company BP was the first company to file for bankruptcy in January 2016, after a massive leak in the Marcellus Shale in Pennsylvania.
UBS analyst Michael Hewson said the Marbank and Shell Oil companies are also likely to face challenges as they struggle to meet demand for energy products and as demand for clean energy rises.
The oil and oil sands have long been considered the future of the industry, but it’s hard to see how production will continue to grow with the climate change and the impact on the environment.
The United States produced nearly 9.5 billion barrels in 2016, the lowest rate since the 1980s, and is expected to fall below 9.4 billion barrels for the first time in at least a decade in 2025.
The U.k. and Canada will have to be the only countries to produce more than that, Hewson told CNBC on Monday.
The International Energy Agency projects that U.s. production will fall by about 4 million barrels an hour in 2025 compared to the previous year.