Friday US time, EOG announced it would cut its capital budget by a further US$1 billion after first quarter earnings fell by 98% compared to this time last year. 

In the first quarter of 2019 the company reported earnings of 635.4 million, however this year following the oil price crash and COVID-19 pandemic, earnings fell to just $9.8 million. 

Houston-based EOG is just the latest in a series of large oil companies to cut spending and watch its profits shatter amid the global economic downturn.

 ANZ senior commodity analyst Daniel Hynes said in a note this morning it was further evidence that the US shale oil industry would be hit hardest by the low oil price. 

Over the past week another 34 active rigs were grounded, bringing the total active units to just 374.

"Now producers are cutting back output immediately," Hynes said this morning. 

"The latest was EOG Resources, a pioneer of the industry. Its output will be reduced by 25% or 125,000 barrels a day in May. 

Last week the OPEC+ oil production cuts came into effect, culling around 10 million barrels a day of global output, however Hynes maintained that US shale would continue to hurt in the coming months.