A new report by Wood McKenzie said the U.S. onshore rig count could drop by as much as 30 percent as operators curb drilling in response to low oil prices.
The number of U.S onshore rigs has already dropped by almost 14 percent since November to 1,662 as of last week.
According to Wood Mackenzie the U.S. land rig count could fall to as low as 1,300 in 2015.
The group forecast a 40 percent spending drop from U.S. operators this year while drilling and completion spending is projected to drop to $90 billion from $140 billion in 2014.
Upstreams have already begun to cut back on spending and shelve projects, with average capital expenditure cuts for 2015 ranging from between 10 percent to 30 percent.
Day rates for oil field service companies could fall by 30 percent in response to the spending slowdown, Wood Mackenzie said.
Houston-based Halliburton said earlier this month that it will trim day rates across all of its product lines.
Houston-based services giants Schlumberger and Baker Hughes have already cut thousands of jobs as they brace for a prolonged drilling downturn.
Earlier this week Baker Hughes announced 7,000 lay offs while Schlumberger axed 9,000 jobs last week.