In a separate report, analysts at IHS recently cut their price forecast, noting that U.S. production has held up better than expected despite the drilling cuts. They also cited continued high OPEC production and weakening growth in global demand.
IHS expects U.S. oil and gas producers to continue to cut investment by another 35 percent this year, with those cuts bottoming later this year. But any recovery will be "long and drawn out," they said, with spending by the end of the decade still 28 percent below the 2014 peak.
Elsewhere in North America, IHS expects that spending by Canadian oil sands producers has been supported by ongoing projects, but those are seen reaching completion by the end of the decade.
Worldwide, more than $1 trillion has been cut from investment in oil and gas development projects planned through the rest of the decade, according Wood Mackenzie's research.
Russia has seen a big dropoff — 40 percent over the next two years in dollar terms, with much of that fall coming from the ruble's slide against the dollar. With its currency devalued, Russia now relies even more heavily on oil and gas production in order to produce revenues. In March, Russian oil output hit a post-Soviet high of nearly 11 million barrels a day
Major Middle East producers are also pumping hard to protect their market share. As a result, cuts in spending and investment have been less severe in that part of the world. Saudi Arabia, for example, plans no investment cuts this year or next, according to Wood MacKenzie.