Shale producer EOG Resources announced that the company management has decided to keep the supplies low considering the lower price and lower demand in the market. The fastest-growing energy company in the country has decided to reduce its spending by 40 percent. EOG Resources has increased its production by 50 percent on an average over the past five years.

Market analysts suggest that the decision taken by EOG Resources will be good for the energy prices and the industry dependent on energy sector revenues. Considering the decline in the crude prices during the past six months, EOG Resources has decided to go slow with drilling.

Houston-based EOG said that the management is confident that the company will remain profitable. The cut in production might continue till the time the oil prices improve. EOG CEO Bill Thomas said that the company aims to exit the downturn in a better position than it entered it. Six months back, EOG Resources had expressed confidence that the company will be able to withstand the tough times. The company manages a 100 percent rate of return at $80 per barrel crude oil price.

EOG Resources stock was down by nearly 7 percent after the reports emerged. Last week, Apache Corporation posted multibillion dollar loss. The company also issued a bleak outlook for the next quarter, as the crude oil prices are expected to remain range-bound for year 2015.

Crude price has declined to less than $50 today after reports emerged that the U.S. inventories have reached a record level. EOG Resources has been the best performing company in the shale energy sector. The stock has declined by only 10 percent in the past six months compared to Apache Corp (down by 33 percent) and Occidental (down by 20 percent).

EOG informed that the company is planning to spend nearly $4.9-5.1 billion during 2015, down by nearly 40 percent. This year, the company aims to bring 345 wells online, compared to 534 well in 2014 in the Eagle Ford region in the eastern Texas.