(Bloomberg) – Operators in the Permian basin pulled back on rig use at the fastest pace in three years as the world’s most prolific shale basin shrinks amid consolidation and the slow return in oil demand.

Rigs targeting both crude and natural gas in the West Texas and southeast New Mexico region declined by 7 to 320 this week, according to data released Friday by Baker Hughes Co. It’s the biggest weekly drop in the Permian since June 2020.

Drillers have been dialing back U.S. activity as growth in global oil demand returns slower than executives were expecting. Public producers have also been cutting after buying their closely held rivals in order to keep a lid on spending growth and return profits to shareholders.